27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Biogen Inc (NASDAQ:BIIB) shares are now trading notably off their all-time high of $468.55 hit on June 7, achieved on the back of Aduhelm approval.
An analyst at RBC Capital Markets has now turned bullish on the stock after remaining on the sidelines for too long.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The Biogen Analyst: Brian Abrahams upgraded Biogen shares from Sector Perform to Outperform and increased the price target from $227 to $248, suggesting about 20% upside from current levels.
The Biogen Thesis: Biogen may have only 11% downside from the current depressed levels, even if Alzheimer's pipeline was removed from RBC's model and with conservative estimates for marketed/developed programs, analyst Abrahams said.
RBC's recent doctor survey suggests that despite the negative publicity received by beta-amyloid antibodies, Alzheimer's physicians are still willing to prescribe them, the analyst noted. This supports multi-billion-dollar sales, he added.
Related Link: The Week Ahead In Biotech (Feb. 27-March 5): Earnings, Multiple Regulatory Decisions Take The Spotlight
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
If there is any near-term National Coverage Determination loosening and/or if the lecanemab Phase 3 reads out positively in the third quarter, doctors would be open to using Biogen's antibodies, the analyst said.
Abrahams added that this will support $8 billion in potential peak end-user Alzheimer's disease sales and valuation upside to $313.
The analyst did acknowledge that uncertainties remain about future beta-amyloid competitive dynamics and duration of use.
"At current levels,
BIBB Price Action: At last check, Biogen shares were up 1.66% to $211.23 at market close.
Related Link: Attention Biotech Investors: Mark Your Calendar For March PDUFA Dates
Photo by Hal Gatewood on Unsplash
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.