BTIG analyst Thomas Shrader has maintained their neutral stance on BIIB stock, giving a Hold rating on May 2.
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Thomas Shrader has given his Hold rating due to a combination of factors impacting Biogen’s current and future performance. The company is experiencing growth in sales of new drugs, but this growth is from a small base and is insufficient to compensate for the decline in its aging multiple sclerosis franchise. Additionally, while the LEQEMBI drug has shown significant year-over-year growth, it is far from reaching the ambitious revenue targets initially hoped for, and its market potential is hindered by safety concerns.
Furthermore, Biogen’s pipeline includes promising trials like BIIB80, but there are concerns that newer, safer technologies could surpass these efforts. The company is also involved in collaborations and deals, such as the one with Stoke, which appear beneficial but are not yet transformative. Overall, the uncertainties in neuroscience, combined with the lack of significant new deal announcements, contribute to the Hold rating, reflecting a cautious outlook on Biogen’s ability to achieve substantial growth in the near term.
Shrader covers the Healthcare sector, focusing on stocks such as Arcturus Therapeutics, Coya Therapeutics, Inc., and Novavax. According to TipRanks, Shrader has an average return of 0.2% and a 33.81% success rate on recommended stocks.
In another report released on May 2, Morgan Stanley also maintained a Hold rating on the stock with a $146.00 price target.