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Analysts Have Drastically Reduced Biogen’s Target Price in March

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Analysts’ recommendations and target price

Wall Street analysts expect a potential upside of 13.56% for Biogen (BIIB) based on its closing price on March 27. Analysts have revised the company’s target price downward twice, from $385.96 in January to $378.11 in February and then to $261.12 in March.

The current consensus analyst recommendation for the stock is a “hold.”

Of the 30 analysts covering Biogen, one has given it a “strong buy,” five have given it “buys,” 23 have given it “holds,” and one has given it a “sell.” The highest and lowest target price estimates for the company are $371 and $210, respectively.

On March 27, Biogen closed at $229.95, 1.27% lower than its previous closing price, 6.40% higher than its 52-week low of $216.12, and 40.84% lower than its 52-week high of $388.67. The company’s market cap is $47.36 billion.

Based on its closing price on March 27, Biogen has reported returns of -28.27% in the last week, -29.81% in the last month, and -17.43% in the last quarter. The company has reported returns of -33.74% in the last half year, -14.26% in the last year, and -23.58% year-to-date.

In its fourth quarter, Biogen reported revenue of $3.53 billion, a year-over-year rise of 6.63% and $135.47 million higher than the consensus estimate. The company reported non-generally accepted accounting principles EPS of $6.99, a YoY rise of 32.89% and $0.27 higher than the consensus estimate.

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Aducanumab exit

On March 21, Biogen and Eisai issued a press release announcing the termination of their aducanumab research program aimed at the treatment of mild cognitive impairment associated with AD (Alzheimers’ disease) and mild AD-related dementia based on recommendations from an independent data monitoring committee. This news proved to be a heavy blow for what was initially touted as a multibillion-dollar opportunity, with Biogen’s share price falling 29.23% and closing at $226.99 on March 21.

The share price slump continued the next day. Biogen closed at $216.71 on March 22, 4.53% lower than its previous day’s close.

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