A look at Biogen
Headquartered in Cambridge, Massachusetts, Biogen (BIIB) is a biopharmaceutical company. It discovers, develops, and manufactures drugs for various therapeutic areas, including immunology, neurology, oncology, and rare diseases.
The above chart shows revenues and EPS (earnings per share) over the last eight quarters and estimates for 3Q17.
Biogen stock has risen ~15.4% in 3Q17, while it has risen ~31.1% year-to-date as of October 20, 2017.
Wall Street analysts estimate that the stock has the potential to rise ~1.0% over the next 12 months. Their recommendations show a 12-month target price of $345.79 per share compared to the last price of $342.42 per share as of October 19, 2017.
There are 29 analysts tracking Biogen stock. Twenty of them recommend a “buy,” and nine recommend a “hold.” None of them have recommended a “sell.” The consensus rating for Biogen stands at 2.07, which represents a “strong buy” for long-term growth investors and a “moderate buy” for momentum investors.
Analysts’ revenue estimates
Biogen’s revenues are mainly driven by strong sales of its neurology products as well as its immuno-oncology products.
Wall Street analysts estimate revenues of $3.0 billion in 3Q17, a ~2.8% rise compared to 3Q16, and EPS of $5.73.
To divest the company-specific risks, investors can consider ETFs such as the Health Care Select Sector SPDR ETF (XLV), which holds 2.2% of its total assets in Biogen (BIIB). XLV also holds 3.2% in Bristol-Myers Squibb (BMY), 2.5% in Eli Lilly (LLY), and 2.4% in Abbott Laboratories (ABT).