Summary: BMO Capital increased its price target on Biogen to $196 from $165 but retained a Market Perform rating. The research house highlighted growing conviction in the long-term opportunity for high-dose Spinraza and positive expectations for litifilimab readouts in SLE, while flagging ongoing revenue erosion in Biogen's multiple sclerosis franchise and mixed fourth-quarter financial results.
BMO Capital's move lifts its target to a level close to where the stock is trading - the new $196 target is in proximity to Biogen's recent share price - yet the firm did not convert that view into an Outperform or Buy rating. The firm specifically pointed to two clinical and commercial catalysts underpinning the revised target: the potential for a higher-dose formulation of Spinraza to improve the treatment pathway for spinal muscular atrophy, and upcoming readouts for litifilimab from the TOPAZ-1 and TOPAZ-2 trials in systemic lupus erythematosus (SLE).
On Spinraza, BMO emphasized the potential for the high-dose version to tackle a practical obstacle associated with the current low-dose regimen - multiple induction injections. The research note framed the high-dose approach as a meaningful improvement in addressing those induction-related challenges, which in turn underpins the firm’s more favorable view of the drug’s long-term commercial opportunity.
Regarding Biogen's SLE program, BMO expressed optimism about the design of the TOPAZ-1 and TOPAZ-2 studies, noting an "intelligent enrollment" strategy that focuses on moderate to severe SLE patients. The firm cited these trials as a reason for increased confidence in the potential for litifilimab to contribute to Biogen's pipeline value.
Despite those positives, BMO retained a Market Perform rating. The firm explained that it expects revenue erosion from Biogen’s multiple sclerosis business to persist into 2026, a dynamic that constrains upside and supports the more cautious stance.
Market action has been notable: Biogen shares rose sharply over the past six months, gaining 53.96%, and climbed 12.33% in the most recent week. InvestingPro data shows the stock trading near its 52-week high of $202.41. InvestingPro also indicates the shares may still be undervalued relative to its Fair Value estimate, and subscribers can access further analysis and 12 additional ProTips on Biogen’s financial position and growth prospects.
Biogen's recent fourth-quarter results were mixed. On a non-GAAP basis the company reported earnings per share of $1.99 on revenue of $2.3 billion, both figures above consensus estimates of $1.63 per share and $2.2 billion in revenue. However, the quarter contained steep declines compared with prior periods: non-GAAP EPS fell 59% from the previous quarter and 42% year-over-year, while revenue decreased by 10% quarter-over-quarter and 7% year-over-year.
Analysts have reacted to Biogen's results and pipeline developments with a range of price-target revisions:
- TD Cowen raised its price target to $215 while maintaining a Buy rating.
- RBC Capital increased its target to $233, citing stability and predictability in Biogen’s performance.
- Bernstein moved its target to $201, acknowledging the company's solid earnings performance despite declines.
- Piper Sandler placed its target at $177, noting growth in Biogen’s Alzheimer’s therapy, Leqembi.
- Guggenheim raised its target to $246, pointing to the potential value in Biogen’s pipeline.
These adjustments reflect a spectrum of views on how to weigh near-term financial pressure against possible longer-term gains from new or reformulated therapies. The combination of mixed quarterly results, an evolving pipeline picture, and a stock trading near its 52-week peak has produced divergent valuations among sell-side analysts.
For investors and market observers, the balance between clinical risk and commercial opportunity remains central to Biogen’s outlook. BMO’s higher price target signals increased confidence in specific pipeline elements - primarily high-dose Spinraza and litifilimab - while the retained Market Perform rating underscores the firm’s caution about near-term revenue trends in MS and the implications for overall company performance.
Note: This article presents the facts and analyst reactions reported regarding Biogen's price-target revisions, financial results, and trial expectations. It includes cited price targets from multiple brokerages and performance figures supplied in recent company reporting and market data.