'Highly Compelling' Eye Drug Data Has Wall Street Stampeding To Buy This 'Large Cap Growth Story.' Even After $15B In Market Cap Was Added

  • Morgan Stanley upgraded Regeneron Pharmaceuticals Inc's REGN to Overweight from Equal Weight with a price target of $851, up from $625. 
  • The analyst says Eylea's "tail risk is removed" following yesterday's aflibercept 8 mg data, and Regeneron is now a "key large-cap biotech growth story." 
  • The analysts still see a "significant upside" despite yesterday's rally, driven by a "clear growth trajectory at the company," as 
    • High-dose Eylea now becomes the agent of choice for front-line patients.
    • Dupixent remains in the long-term growth position and will likely achieve $20 billion-plus in peak sales. 
    • Advancing the oncology pipeline can provide the next leg of growth, with a sizeable cash position providing significant optionality.
  • Morgan Stanley analyst now views Regeneron as the "preferred large-cap growth name."
  • SVB Leerink also raised the price target on Regeneron to $756 from $630 with a Market Perform rating on the shares following the "highly compelling" high dose Eylea results. 
  • The analyst believes high dose Eylea will blunt the risk of biosimilar 2 mg Eylea competition and reduce Regeneron's reliance on oncology pipeline success to drive growth besides Dupixent.
  • Barclays maintains Regeneron with an Overweight and raises the price target from $735 to $815.
  • Jefferies has upgraded Regeneron from Underperform to Hold, with a price target of $675 from $536.
  • Price Action: REGN shares are up 4.38% at $739.80 on the last check Friday.
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