BofA/Merrill Lynch Reinstates Biogen (BIIB) at Neutral

BofA/Merrill Lynch initiates coverage on Biogen (NASDAQ: BIIB) with a Neutral rating and a price target of $371.00.

Analyst Ying Huang comments, "We reinstate coverage of BIIB with a Neutral rating and a PO of $371, based on a 23x multiple on our 2015 non-GAAP EPS estimate. BIIB holds a leading share of the $16B global multiple sclerosis (MS) market and entered hemophilia market with its recently approved Alprolix and Eloctate in the US. Its key growth driver Tecfidera continues to gain market share in the US and is off to a strong start in Europe. We believe there could be additional upside to Tecfidera ex-US consensus estimates in the outer years. BIIB has an intriguing pipeline with catalysts in the next 6-18 months. Nevertheless, we rate BIIB a Neutral as we believe 1) risk/reward heading into the read-out of the anti-LINGO optic neuritis study is balanced, and this study would provide limited read-through for the potential in MS; 2) probability of success for Tysabri ASCEND study in SPMS is low; and 3) positive momentum of its early stage pipeline is appropriately reflected in the current multiple."

For an analyst ratings summary and ratings history on Biogen click here. For more ratings news on Biogen click here.

Shares of Biogen closed at $330.81 yesterday.

You May Also Be Interested In

• FirstEnergy Corp. (FE) PT Raised to $35 at BofA Securities
• Southern Co. (SO) PT Raised to $73 at BofA Securities
• Roth/MKM Upgrades Albertsons Companies Inc. (ACI) to Buy, 'Fundamental Floor and Improved Deal Likelihood'