Guggenheim upgrades Biogen, sees over 50% chance of Alzheimer's approval
Guggenheim analyst Yatin Suneja upgraded Biogen to Buy from Neutral with a price target of $365, up from $256. The stock closed Tuesday up 26%, or $58.36, to $281.87. Biogen's key Alzheimer's asset aducanumab is "back in play" following a new analysis of Phase III dataset, Suneja tells investors in a research note. While the robustness of the data will continue to be debated by the Street, there is "more than an even chance" of FDA approval, says the analyst. As a result, Suneja expects Biogen shares to outperform heading into the FDA decision. Aducanumab has the potential to generate $5B-$10B in peak sales, potentially leading to greater than 50% upside appreciation in Biogen shares, contends Suneja. Meanwhile, the analyst believes the company's pipeline "offers optionality" and its commercial products are performing well.