- Morgan Stanley on Monday updated Biogen from underweight to overweight– an uncommon double upgrade– mentioning compelling risk versus reward in the long-lasting.
- The firm likewise improved its rate target on Biogen to $357 from $263 The new target cost represents a more than 30%upside from where Biogen traded at Friday’s close.
- Shares of Biogen got almost 5%on Monday.
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Biogen got an unusual double upgrade on Monday from Morgan Stanley, which improved its rating on the company to obese from underweight citing engaging long-lasting risk versus reward.
Morgan Stanley likewise improved its Biogen rate target to $357 from $263 The new figure is more than 30%greater than Biogen’s Friday closing cost.
Shares of Biogen jumped almost 5%during intraday trading Monday..
” In the near-term, our company believe BIIB is likely to face 10% in disadvantage pressure due to multiple at-risk generic launches for numerous sclerosis (MS) drug Tecfidera,” analysts led by Matthew Harrison wrote Monday.
He continued: “Nevertheless, we expect financiers to rapidly look past the Tecfidera downside and start to rate in greater chances of success for aducanumab, Biogen’s investigational drug which is the very first potential disease-modifying therapy for Alzheimer’s illness.”
Morgan Stanley stated that it believes investors are presently pricing in a less than 25%possibility of success, however that will increase to a minimum of 50%as the drug moves closer to its prospective FDA approval date, expected in March2021
Financiers who take a “wait-and-see approach” might miss out on a prospective up to 20%relocation in the near term for Biogen, according to the note..
” While BIIB stays a high-risk/ high-reward stock, we believe now is the correct time to take the risk,” said Harrison.
Biogen has actually shed roughly 5%year-to-date