Bank of America Securities analyst Tim Anderson reiterated a Hold rating on Biogen (BIIB – Research Report) today and set a price target of $163.00.
Tim Anderson has given his Hold rating due to a combination of factors including Biogen’s current financial outlook and market positioning. Biogen’s revenue projections for 2025 and 2026 show only slight increases, with expected declines in the later years due to factors such as the loss of exclusivity on Tecfidera in the EU. The EPS is anticipated to remain stable primarily because of cost-cutting measures, rather than growth in core operations.
Additionally, while Biogen’s stock is considered undervalued compared to other large-cap biopharma companies, a compelling case for buying the stock is not readily apparent. The potential new drugs in Biogen’s pipeline are still in early stages and are not expected to contribute significantly until 2026/2027. Consequently, Tim Anderson maintains a Hold rating as the company faces challenges in achieving substantial earnings growth in the near term.
In another report released today, Bernstein also initiated coverage with a Hold rating on the stock with a $160.00 price target.