BIIB - 1 Wall Street Analyst Thinks Biogen Stock Is Going to $311. Is It a Buy Around $223?
2024-03-02 04:53:00 ET
On Feb. 20, Cantor Fitzgerald analyst Eric Schmidt restated his aggressive price target for Biogen , (NASDAQ: BIIB) estimating that the biopharmaceutical stock will rise by 39% to reach roughly $311. One driver for that anticipated growth is the company's newly launched drug called Leqembi, which aims to treat Alzheimer's disease. But Leqembi is just one of four recent launches, with the other medicines treating conditions like postpartum depression and amyotrophic lateral sclerosis (ALS).
Schmidt is likely to be mindful of the fact that Biogen has four upcoming data readouts from programs that management thinks could be significant future contributors to the stock's performance. Likewise, its ongoing cost-cutting campaign aiming to save $1 billion by 2025 is in full swing, and it should continue to support the bottom line. But should investors consider buying it at around its current price of $223?
Biogen's top line was close to flat in 2023 on a constant currency basis, totalling $9.8 billion. Furthermore, its diluted earnings per share (EPS) fell by 62%, reaching $7.97 for the year. Cost-cutting alone will not be sufficient to stoke growth.
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1 Wall Street Analyst Thinks Biogen Stock Is Going to $311. Is It a Buy Around $223?