Key takeaways
- Truist Securities raises Biogen rating from Hold to Buy, raising price target from $190 to $235.
- The analyst’s action precedes critical phase 2 results for Alzheimer’s disease candidate diranersen scheduled for July 14
- Biogen shares rose 1.3% to $201.63 during early trading Monday
- Analyst firm incorporates probability-adjusted sales estimates for lupus treatments litifilimab and felzartamab into assessment
- The upcoming second-quarter financial results on July 29 are unlikely to move the stock significantly, according to Truist
On Monday, Truist Securities raised its stance on Biogen (BIIB) from Hold to Buy, simultaneously boosting its price target from $190 to $235. This new target suggests approximately 18% upside potential from the stock’s Friday close of $199.15.
Biogen shares rose 1.3% in early trading Monday, to $201.63. Despite falling 7.8% this month, the biotech stock maintains a 13% year-to-date advance, outpacing the S&P 500’s 11% rise.
The timing of the upgrade coincides with Biogen’s presentation scheduled for Tuesday at the Alzheimer’s Association International Conference to be held in London. During this session, the pharmaceutical company will reveal comprehensive Phase 2 results for diranersen, its experimental treatment for Alzheimer’s disease.
Back in May, Biogen revealed that diranersen failed to meet its primary measure of efficacy in a phase 2 trial. However, management has indicated its intention to move forward with Phase 3 development, and Tuesday’s data disclosure should provide clarity on the rationale supporting this strategic decision.
According to Truist, the company has an “increasingly constructive” view of the stock, based largely on the expectation that DeRannersen’s information could serve as an important positive catalyst. The investment bank identifies “attractive risk/reward” dynamics as the company approaches what it describes as “pivotal data readings that reduce risk.”
Expanding pipeline horizons
Truist’s bullish thesis extends beyond diranersen. The company highlighted several expected late-stage milestones over the next two years as critical contributors to long-term shareholder value creation.
These include phase III results for litifilimab, a treatment for lupus, expected in the fourth quarter of 2026, and data for felzartamab in antibody-mediated rejection expected around mid-2027.
Truist applied a 50% weighted peak revenue estimate of approximately $750 million for litifilimab and assigned a 65% probability-adjusted sales forecast of approximately $500 million for felzartamab in antibody-mediated rejection. The company also expects sales of $260 million for the treatment of primary membranous nephropathy.
These pipeline additions increase Truist’s 2035 revenue forecast by approximately $1.5 billion, forming the basis for the higher price target.
The investment firm asserts that current market valuations do not adequately reflect the commercial opportunity embodied in Biogen’s Alzheimer’s and Immunology development portfolio.
Partner performance matters
Those following Biogen should also keep an eye on Ionis Pharmaceuticals, a key collaboration partner. Ionis shares fell last week after an unexpected clinical failure of a cardiovascular drug developed alongside it AstraZeneca.
Truist noted that it does not view Biogen’s upcoming second-quarter earnings report, scheduled for July 29, as a significant catalyst for the stock.
Instead, the company expects pipeline developments — starting with Deranersen’s presentation on Tuesday — to be the main driver of investor sentiment in the coming quarters.
Biogen shares have posted a 13% gain through 2026 so far.
