Regeneron price target lowered to $1,215 from $1,260 at RBC Capital

RBC Capital analyst Brian Abrahams lowered the firm’s price target on Regeneron (REGN) to $1,215 from $1,260 and keeps an Outperform rating on the shares. The firm says that the extent of downside move post-Q3 earnings and the stock weakness since the earlier biosimilar launch are “somewhat surprising,” as it had always thought near- and long-term consensus optho franchise estimates were better understood as being unrealistically optimistic and that the story had long since moved on to the numerous pipeline and Dupi expansion growth drivers that would more than offset the inevitable Eylea erosion. While RBC acknowledges anticipated declines of a core profit driver and likely flat/down near-term EPS until drivers kick in never make for optimal optics, fundamental fair value seems well above where shares sit today, and if today’s earnings finally reset Eylea expectations, the firm believes there are plenty of near-term catalysts to help get them there.