Biogen upgraded to Buy from Hold at Stifel

Stifel upgraded Biogen (BIIB) to Buy from Hold with a price target of $202, up from $144, following the Q3 report. The firm believes the stock’s risk/reward is shifting favorably with clinical catalysts ahead. The upgrade is not a call on the base business, as Biogen’s Q3 results were mixed and Q4 “will be just okay,” the analyst tells investors in a research note. However, Stifel believes Biogen shares can trade higher in the next 12 months due to a “narrative shift” in Alzheimer’s. This will be supported by potential success of Eli Lily’s TRAILBLAZER-ALZ 3 trial, which could fundamentally change the way doctors and investors think about amyloid beta antibodies, the analyst tells investors in a research note. Biogen offers “unique optionality even if clinical catalysts still have risks,” contends the firm.