Biogen Inc, (NASDAQ:BIIB) shares surged to a two-year high on Tuesday after two brokers turned bullish on the stock ahead, just a week ahead of the release of its third quarter results.
The brokers have even put up price targets of at least US$400.
READ: Biogen shares advance after Morgan Stanley note and positive data
In premarket trade on Wednesday, its shares were up 0.94% at US$347.79 befor easing back in the regular session to US$345.70 - up 0.36%.
Stifel analyst Thomas Shrader raised his rating on the biotech to a ‘buy’ from a ‘hold’ and upped the price target to US$415 from US$300.
While Mizuho analyst Salim Syed, who also raised his rating on the stock to a ‘buy’ from ‘neutral’ has a US$400 target from US$319.
“We like what we see at Biogen again,” said Shrader in his broker note to clients.
“Biogen back to basics—MS not imploding, R&D output exploring, investors should be reloading,” he said. The analyst is also upbeat on the company’s research and development efforts aimed at large market opportunities.
READ: Biogen lifts full year guidance after second quarter results beat forecasts
On the other hand, Syed believes Biogen will have “clean” third-quarter results, with its treatment for spinal muscular atrophy, Spinraza, expected to “significantly beat consensus” this quarter.
Like Shrader, Syed also believes concerns over MS competition is overblown, as Biogen’s treatments have different efficacy and safety profiles, which should help the company gain market share.
Biogen is scheduled to report results on October. 24, before market open. Wall Street is forecasting earnings per share of US$5.71, up from US$5.19 a year ago or US$3.03bn from US$2.96bn.