Canaccord Genuity analyst Sumant Kulkarni upgraded Biogen (BIIB) to Buy from Hold with a price target of $360, up from $305. The shares closed Friday down 2% to $278.14.
The analyst admits to being "surprised as anyone" by Biogen's "sudden revival" in October of aducanumab for early Alzheimer's disease. Kulkarni, who retains a "healthy degree of skepticism" around the trial data Biogen presented in December, says that even skeptics appear to agree that aducanumab, "for a variety of reasons, has a decent shot at FDA approval." This is not reflected in the shares at current levels, Kulkarni tells investors in a research note.
The analyst likes the opportunity Biogen presents heading into the "regulatory saga" on aducanumab. His new price target reflects a 50% probability of approval for aducanumab.
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