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Biogen: Analysts’ Views before Its Second-Quarter Results


Nov. 20 2020, Updated 4:35 p.m. ET

Analysts’ recommendations for Biogen

On July 24, Biogen (BIIB) is scheduled to release its second-quarter earnings results. Let’s look at Wall Street analysts’ estimates, recommendations, and target prices for Biogen stock before its earnings release.

For the second quarter, analysts expect Biogen to report sales of $3.3 billion, which represents ~5.8% growth year-over-year. The adjusted EPS is expected to be $5.21 for the second quarter. The above chart shows Biogen’s sales estimates compared to the actual sales reported by the company in the last few quarters.

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Target prices

Last week, Canaccord Genuity raised its target price on Biogen from $335 to $396. Canaccord Genuity analyst Sumant Kulkarni thinks that Biogen’s Alzheimer candidate BAN2401 is the company’s key growth driver. Biogen stock rose due to positive top-line results from its BAN2401 Phase 2 study on July 5. To learn more about the results, read Biogen Stock Up on Alzheimer Trial Success. Biogen is slated to present the study data on July 25 at the Alzheimer’s Association International Conference in Chicago. On July 17, Guggenheim raised its target price on Biogen stock from $385 to $404. Piper Jaffray raised its target price on the stock from $353 to $365 on July 11.

However, Leerink maintained its “market perform” rating and the target price of $325. Leerink thinks that Biogen will lose market share in the future due to flat to declining sales. Morgan Stanley cut its target price on Biogen stock from $369 to $366 on July 13.

Analysts’ consensus target price and recommendations

A recent Reuters survey, which included 29 investment research firms covering Biogen stock, showed that 69% (or 20) of the analysts have a “buy” or “strong buy” rating on Biogen. The remaining 31% (or nine) analysts have a “hold” rating on the stock. None of the firms gave Biogen a “sell” rating. The above chart shows the 12-month recommendation summary for Biogen stock over the last few months.

On July 23, Biogen had a consensus 12-month target price of $369.42, which implies a 12-month investment return potential of 1.9%. The return is based on the stock’s closing price of $61.78 on July 20.

Pfizer (PFE), Merck (MRK), and Eli Lilly (LLY) had average target prices of $39.80, $69.44, and $92.65, respectively. The price targets imply 12-month returns of 6.6%, 11.1%, and 4.7%, respectively.

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