Biogen may build further momentum after releasing new data from its recent investigational drug trials, according to Truist Securities. The investment bank upgraded Biogen from hold to buy in a report published Monday, raising its 12-month price target to $235 from $190—implying roughly 18% upside from Friday’s closing price.
“Our increasingly constructive view on the outlook for Biogen shares is driven by (1) expectations for the unveiling of differentiated, clinically meaningful phase 2 data with Diranersen (BIIB080), the company’s anti-tau Alzheimer’s disease asset at next week’s AAIC conference, and (2) what we see as an attractive risk/reward ahead of approaching key de-risking pivotal data readouts,” wrote analyst Danielle Brill.
The Alzheimer’s Association International Conference (AAIC) is being held in London through July 15. Biogen is scheduled to present results from the phase 2 trial of its investigational antisense oligonucleotide (ASO) therapy for Alzheimer’s disease on July 14. Brill noted several indicators suggesting the findings could positively impact the stock. “While specific details were not shared due to AAIC’s strict embargo policy, management’s tone read very positive to us,” the analyst said. “We also believe the bar for advancing this program was high, so the fact that Biogen is planning a phase 3 trial signals to us that the evidence was compelling.”
Truist also expects Biogen to generate additional sales and potential share gains if trials for Felzartamab, an investigational kidney disease treatment, continue to deliver strong results. “Felzartamab de-risking is also on the horizon with phase 3 antibody-mediated rejection data expected mid-2027,” Brill wrote. “Phase 2 data is supportive of incorporating risk-adjusted revenues into our forecasts.”
Truist’s stance aligns with Wall Street consensus, as LSEG data shows that 23 of 38 analysts covering Biogen rate the stock a buy or strong buy. Biogen shares have climbed 13% year to date.
