UBS says Biogen is trading at a discount, but now is a good time for investors to scoop up an “out-of-favour” stock as a combination of factors could push it higher quickly. The investment bank upgraded the drug name from neutral to buy. He also raised his price target to $225 from $185, implying a 21% upside from Tuesday’s closing price. “We see 12-15 months of upside for pipeline catalysts in undervalued stocks that are trading at a discount relative to large-cap stocks,” analyst Michael Yee said in a note to clients. The stock is up nearly 6% in 2026, outperforming the broader market year-to-date. However, the stock is trading at a discount compared to the S&P 500’s healthcare sector. Biogen’s forward price/earnings ratio is approximately 12 times. The sector trades at a multiple of 17, according to FactSet. BIIB YTD Mountain Biogen is up nearly 6% in 2026. Biogen is developing an investigational drug called BIIB080 to treat Alzheimer’s disease that may continue to prove effective in clinical studies this summer. According to UBS, this will provide at least a modest boost to the company’s stock price. “We believe there is a strong likelihood of positive trends…and BIIB will continue to move forward…with strong trends in reduction[of Alzheimer’s disease-associated proteins]and cognitive endpoints,” Yee wrote. “There’s an upside skew here of 10% to 25% upside and 5% to 10% downside.” The company is also expected to release data from a Phase 3 trial of its lupus drug ritifilimab in the fourth quarter, which should also give Biogen stock more room. “BIIB could rise more than 20% in the fourth quarter on positive data, which would support the filing (of a biologics license application) for the next stage of the commercial franchise,” Yee wrote. Positive results from another clinical trial for a drug called ferzaltamab could also boost the stock, UBS said. Data related to the study is expected to be released in the first half of 2027, according to a new bank memo. Wall Street is divided on Biogen. According to LSEG data, of the 37 analysts covering the stock, 18 rate it a “buy” or “strong buy,” while the remaining 18 rate the stock as a “hold.” However, it seems like some of the shops down the street have started increasing their stock recently. Earlier this month, Piper Sandler and Wells Fargo also upgraded their ratings on Biogen.
