Freedom Broker Upgrades Biogen's Rating#
Freedom Broker has upgraded Biogen's stock rating from Hold to Buy and increased its price target from $185 to $245. Currently, Biogen's stock is trading at $187.07, indicating a potential upside of over 30%. Over the past year, the company has delivered a robust return of 56.5%, and analysis suggests that the stock is undervalued compared to its fair value.
Strong Earnings Performance#
Biogen's first-quarter 2026 results exceeded expectations, driven by growth products that generated more revenue than its multiple sclerosis franchise, excluding the drug Vumerity. The company reported non-GAAP earnings per share of $3.57, an 18% increase from the previous year, with total revenue reaching approximately $2.48 billion, marking a 2% rise and surpassing analyst forecasts by 10%.
Strategic Acquisition of Apellis#
Freedom Broker pointed out Biogen's acquisition of Apellis as a strategic move to tackle anticipated revenue challenges from an aging product lineup. This acquisition is expected to bolster near-term results and help reverse the projected revenue decline. Following this deal, Freedom Broker raised its price-to-earnings (P/E) target multiple from 11 to 15 times, and its price-to-sales multiple from 3 to 4 times, reflecting improved investor sentiment.
Future Outlook#
Although Biogen has reduced its earnings-per-share guidance due to one-time charges, analysts predict an EPS of $14.64 for fiscal 2026. Notably, 17 analysts have adjusted their earnings forecasts downward for the upcoming period. Freedom Broker has not yet included the Apellis acquisition in its financial model and plans to update its estimates after the second-quarter 2026 results. Biogen's ongoing efforts in financial performance and clinical advancements, including its CELIA trial for the BIIB080 therapy, continue to be closely monitored by investors.