Terence Flynn, an analyst from Morgan Stanley, maintained the Hold rating on Biogen. The associated price target remains the same with $149.00.
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Terence Flynn has given his Hold rating due to a combination of factors influencing Biogen’s current and future performance. The company reported a positive third-quarter performance, primarily driven by its legacy products, but its newer products, Leqembi and Skyclarys, underperformed expectations. Despite raising the midpoint of its 2025 revenue guidance slightly, Biogen lowered its non-GAAP EPS guidance due to increased IPR&D expenses, indicating financial challenges ahead.
Furthermore, while Biogen is making strategic investments for long-term growth, the near-term outlook remains cautious with anticipated flat revenue growth for 2025. The competition in the Alzheimer’s treatment market is intensifying, with Leqembi facing challenges in maintaining its market share. Although there is potential for future growth with new product launches and increased use of blood-based diagnostics, these factors contribute to a balanced risk-reward scenario, justifying the Hold rating.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BIIB in relation to earlier this year.