Nomura Securities Starts Biogen (BIIB) at Buy, $368 PT

January 8, 2014 7:48 AM EST Send to a Friend
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Price: $305.40 -0.44%

Rating Summary:
    21 Buy, 8 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 11 | Down: 14 | New: 51
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Nomura Securities initiates coverage on Biogen (NASDAQ: BIIB) with a Buy. PT $368.00.

"We believe Biogen offers investors a unique combination of two highly defensible franchises, MS and oncology, given the line extension strategy put in place for Avonex (with Plegridy) and Rituxan (Gazyva) combined with potential for significant revenue growth driven by Tecfidera, a blockbuster oral treatment for MS, with estimated peak sales of $9bn," analyst Ian Somaiya comments. "We believe the combination of these factors will generate free cash flow of $3bn+ annually and enable Biogen to start paying a dividend in 2016. Our $368 target price is based on a DCF analysis of 2015-20E projected free cash flows discounted at 11% (above WACC of 9.6%) and terminal growth rate of 6%. FY13E EPS at $8.83; FY14E EPS at $11.12."

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 $273.52 yesterday.


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