Investing.com -- UBS analyst Michael Yee upgraded Biogen to Buy from Neutral and raised the price target to $225 from $185 in a note on Wednesday, citing a concentrated window of pipeline catalysts over the next 12 to 15 months that the firm believes the market has yet to fully price in.

Yee argues that the stock trades at an unwarranted discount to large-cap peers, at 11 times 2027 estimated earnings versus a group mean of 15 times, on what he describes as an "underowned, out-of-favor stock."

UBS sees 25% to 50% upside from current levels against roughly 20% downside.

Four catalysts are said to anchor the bullish case. First, tau data from BIIB080 is expected this summer. UBS acknowledges statistical significance is unlikely given a downsized trial, but sees "upside skew here up 10-25% vs. down maybe 5-10%" on the back of encouraging PET tau reduction trends.

Second, and more materially, Phase III data for litifilimab in systemic lupus erythematosus is due in the fourth quarter, where UBS assigns a 65% probability of success and projects peak sales north of $1 billion in that indication alone, potentially driving the stock up 20% or more on positive results.

Third, additional data in cutaneous lupus erythematosus is expected in mid-2027, an area UBS describes as "wide open with no approved therapies."

Fourth, Phase III data for felzartamab in antibody-mediated rejection following kidney transplant is due in the first half of 2027, with UBS assigning 55% to 60% probability of success.

UBS applies a 14 times price-to-earnings multiple on 2027 estimated earnings of $16.53 to arrive at its $225 target.