Biogen raised to Overweight at Wells Fargo on valuation
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Biogen (NASDAQ:BIIB) is trading higher in the premarket Monday after Well Fargo upgraded the Alzheimerâs drug developer to Overweight from Equal Weight, citing its underappreciated royalty revenue. The price target raised to $265 from $235 per share implies a premium of ~25% to the last close.

After valuing the biotech on discounted cash flow and sum-of-the-parts techniques, the analysts led by Mohit Bansal argued that the companyâs base business alone might be worth more than the Street estimates.
âThis is because investors are not valuing royalty streams coming to BIIB properly, which makes for 15% of current revenues and 40% of the valuation, by our math,â the team added.
The DCF-based price target follows an assumption of a 50% probability for BAN-2401 data expected in the second half of the year for the experimental Alzheimerâs therapy.
Read: The uncertainties over a potential approval for BAN-2401 â also known as lecanemab â prompted Stifel to downgrade Biogen in March.