Market Overview

RBC's Michael Yee Still Sees Value in Biogen's Long-Term Pipeline

RBC's Michael Yee Still Sees Value in Biogen's Long-Term Pipeline

Biogen Inc (NASDAQ: BIIB) shares are being killed today after the company reported earnings that missed expectations and lowered guidance. Shares are trading down by more than 18 percent on Friday to below $315 at last.

Michael Yee at RBC Capital Markets said that the stock may "take a bit of time to settle before long-term investors step in," but that "longer-term investors will find value in the pipeline." Further, Yee said that he cannot "rule out the ability to do deals, buy back stock, and other capital deployment or business deployments."

"Ultimately, long-term investors get the same huge pipeline including Phase III Alzheimer's now and Phase II LINGO still on the come in H1:16 and the stock is more than $100 cheaper than it was earlier in the year," Yee added.

Related Link: Biogen Posts Higher Q2 Earnings, But Sales Miss Views


Just between those two opportunities, Yee forecasted that there could be $5 to $20 billion in pipeline in the next few years. The Alzheimer's drug alone could "double the company's revenue and earnings" in Yee's view.

Yee also said that there is a potential that Biogen had a "kitchen sink" quarter and that, combined with the fact that management's guidance is typically conservative, means that it "could leave some room for upside" moves.

Given Friday's steep decline, Biogen is now lower by more than 7.5 percent on the year and down 6.7 percent over the past 52 weeks. The 52-week high, hit in April is more than 52 percent above current price.

Biogen was last seen trading at $311.43.

Image Credit: Public Domain

Latest Ratings for BIIB

May 2019Initiates Coverage OnNeutral
May 2019Initiates Coverage OnUnderperform
May 2019MaintainsEqual-Weight

View More Analyst Ratings for BIIB
View the Latest Analyst Ratings

Posted-In: Alzheimers Michael Yee RBC Capital MarketsAnalyst Color Biotech Analyst Ratings Tech


Related Articles (BIIB)

View Comments and Join the Discussion!

Latest Ratings

NLYInitiates Coverage On9.5
AGNCInitiates Coverage On16.5
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

United Rentals Blasted For Second Consecutive Day

Palo Alto Networks CEO On The Changing Perception Toward Cybersecurity