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Analysts Predict Volatility In Biogen Shares Until March 2021

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Analysts Predict Volatility In Biogen Shares Until March 2021

Wall Street analysts suggest that Biogen Inc (NASDAQ: BIIB) stock is about to see a significant selloff and could witness volatility until the Food and Drugs Administration (FDA) review process comes to a close in March 2021, Bloomberg reports.

The analyst forecasts were based on expectations that the company's developmental treatment for Alzheimer's disease, Aducanumab, would not be approved by the FDA.

What Happened: Biogen is developing its Alzheimer's therapy in partnership with the Japanese pharma company Eisai Co. Ltd (OTC: ESALY).

Trading on BIIB stock halted on Friday, well before an FDA advisory committee opined against Aducanumab's effectiveness. On the other hand, Eisai stock was trading 18.09% lower on Friday's close.

Last week, during Wednesday's trading session, Biogen stock surged 40.4%, after an FDA report favored the drug.

Why It Matters: Any independent recommendations by the FDA advisory committee are non-binding. However, Bloomberg Intelligence analyst Marc Engelsgjerd believes that the FDA could lose credibility if it approves the drug despite a "clear vote of no confidence" by the panel.

Analyst Forecasts: Based on Bloomberg's report, six analysts reduced price targets or believed that the stock would underperform.

Michael Yee, Jefferies analyst, recommended the stock is a buy with a price target of $450. However, Yee claims that the shares would suffer a setback and drop to a price range of $220 to $250.

RBC Capital Markets analyst expects the sector to perform but revised the BIIB price targets between $244 and $263.

Steve Seedhouse, Director of Biotechnology for Raymond James, remarked the panel's decision as "a disaster for aducanumab" and downgraded the stock to underperform.

Brian Skorney, a Senior Research Analyst with Robert W. Baird & Co, said that "in the face of such an overwhelmingly negative vote and commentary," approval of aducanumab is "virtually impossible." Brian cut Biogen's price target to $228 with an 'underperform' rating.

Paul Matteis, MD and Biotechnology research analyst at Stifel Financial Corp, issued a hold recommendation with a $258 price target.

See more BIIB analyst ratings here.

Latest Ratings for BIIB

DateFirmActionFromTo
Nov 2020RBC CapitalMaintainsSector Perform
Nov 2020DZ BankUpgradesHoldBuy
Nov 2020B of A SecuritiesDowngradesNeutralUnderperform

View More Analyst Ratings for BIIB
View the Latest Analyst Ratings

 

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