Biogen Inc’s (NASDAQ:BIIB) base business seems to be worth much more than what the Road estimates, and it is doable that buyers are not correctly valuing royalty streams coming to the corporation, which contributes 15% of present revenues and 40% of the valuation, according to Wells Fargo.
The Biogen Analyst: Mohit Bansal upgraded the rating for Biogen from Equal Fat to Chubby, although retaining the price tag focus on unchanged at $265.
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The Biogen Thesis: The existing valuation of the inventory has a “very powerful threat/reward into BAN-2401 knowledge,” which is scheduled for the 2nd 50 % of 2022, Bansal said in the up grade observe.
“Our contact assumes that investors would assign at minimum 50% probability to BAN-2401 into the facts function,” he extra.
“While Alzheimer’s is difficult to handicap, we observe that it is a single of the biggest catalysts of the year, and we see buyers using an equal pounds placement in Biogen at bare minimum publish 1Q EPS. Presented the attractive threat/reward, we assume this trade is far too fantastic to dismiss at this level,” the analyst wrote.
BIIB Price Action: Shares of Biogen experienced risen by 1.32% to $215.36 at the time of publication Monday, according to Benzinga Professional.
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