Biogen downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler downgraded Biogen (BIIB) to Neutral from Overweight with a price target of $138, down from $315, following a transfer of coverage. Biogen remains in transition, as management “forges ahead” with the buildout of its Alzheimer’s disease franchise, which is an “uphill battle,” the analyst tells investors in a research note. The firm says that while leaning heavily into immunology-focused research and development gives the company “more of a fighting chance at driving longer-term value recovery,” the challenge is that these pipeline opportunities are a “ways away from bearing fruit.” Biogen “has its share of challenges in the coming years,” given that over 60% of its sales are still driven by a multiple sclerosis footprint “that is sure to shrink further,” contends Piper. As such, it believes the shares are fairly valued.