JPMorgan gets bullish on Biogen ahead of 2027 catalysts

Investing.com -- JPMorgan lifted its rating for Biogen to Overweight from Neutral on Monday, pointing to a stronger run of clinical catalysts in 2027 and an improved long-term growth outlook.

The bank set a December 2027 price target of $300 per share on the stock.

Analyst Chris Schott believes the company is evolving beyond being just a story about its Alzheimer’s drug Leqembi, calling Biogen “one of the more attractive names to own heading into 2027.”

He highlighted three readouts. Felzartamab in antibody-mediated rejection, a complication of kidney transplants, is the most significant opportunity in the pipeline, representing a market worth more than $2 billion.

Phase 3 data is expected in the first half of 2027, and Schott sees upside to Street estimates from that indication alone.

JPMorgan also sees a clear read-through to Leqembi from Eli Lilly’s TRAILBLAZER-ALZ-3 trial in pre-clinical Alzheimer’s, where it assigns a high probability of success.

“Along these lines, we believe success in the preclinical setting would translate to a significantly larger addressable market for the class,” wrote Schott.

The third is litifilimab in cutaneous lupus, where there are currently no approved therapies, with data due in the first half of 2027.

Two Phase 3 trials of litifilimab in systemic lupus are due in the fourth quarter. Schott views those as higher risk, but said it still makes sense to own the stock into the data, with shares likely to recover quickly on any setback.

“We expect accelerating topline growth for Biogen as we look out to the 2030s,” the analyst added. “With shares trading at ~14x 2027 EPS, despite an EPS growth that we expect to accelerate from mid single digits to low double digits or higher by 2030, we expect BIIB shares to re-rate on pipeline derisking over the next 12 months.”

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