Truist Securities has expressed an optimistic outlook for Biogen, upgrading the stock from hold to buy and increasing the 12-month price target from $190 to $235, suggesting an 18% potential upside from the recent closing price.
This upgrade is largely based on expectations for promising phase-two trial data for Diranersen (BIIB080), an anti-tau therapy for Alzheimer's disease, which Biogen will present at the Alzheimer's Association International Conference (AAIC) in London on July 14.
Analyst Danielle Brill noted that the tone of management's communications has been positive, indicating that the trial results may meet or exceed expectations. Furthermore, the anticipation of a phase-three trial suggests that the evidence supporting Diranersen is compelling.
Additionally, Biogen's potential for increased sales and stock performance is bolstered by the upcoming phase-three trial data for Felzartamab, a treatment for kidney disease, expected in mid-2027. Overall, Truist's analysis aligns with broader market sentiment, as 23 out of 38 analysts currently rate Biogen as a buy or strong buy, and the stock has already appreciated by 13% year to date