Piper Sandler on Monday increased its 12-month price objective for Biogen (NASDAQ:BIIB) to $177.00 from $157.00, but left its recommendation unchanged at Neutral. The upgraded target still lags the company's recent trading level of $196.07, a price that has climbed 12.33% over the past week.
The firm pointed to the ongoing ramp of Leqembi, Biogen's Alzheimer's disease therapy, as a key driver of the revision, noting steady commercial momentum for the asset. Piper Sandler also highlighted what it described as a "solid Skyclarys print" in the quarter, referencing Biogen's treatment for Friedreich's ataxia.
Biogen reported fourth-quarter 2025 diluted non-GAAP earnings per share of $1.99 on revenue of $2.3 billion, figures that exceeded Street estimates of $1.63 and $2.2 billion, respectively. The company also reported non-GAAP EPS of $1.99 on revenues of approximately $2.28 billion in disclosures that analysts have been parsing closely. Those results came alongside materially lower earnings on both a sequential and year-over-year basis, with a 59% decline in earnings quarter-over-quarter and a 42% decline year-over-year reported in the quarter.
The stronger-than-expected revenue print helped drive a notable rally: Biogen has returned 53.96% in price over the last six months. InvestingPro data cited in market commentary indicates the shares may still be undervalued relative to Fair Value estimates, a contrast to the diverging analyst perspectives evident after the release.
Despite the positive top-line and the Leqembi momentum, Piper Sandler retained a cautious stance on Biogen's longer-term profile. The firm flagged Biogen's "continued heavy exposure to a declining legacy multiple sclerosis (MS) segment" as a restraint on sustained growth potential. Piper Sandler said the raised price target largely reflects "a somewhat tempered pace of MS segment erosion in 2026 along with flat spend for the year," an outlook that the research house said is consistent with current management guidance.
The fourth-quarter results prompted a wave of target changes across the research community. Guggenheim lifted its target to $246, pointing to pipeline potential. Canaccord Genuity moved its target to $230 on the strength of the quarter and had previously forecast revenue of $2.17 billion, below the reported figure. H.C. Wainwright increased its target to $228, citing pipeline diversification and potential upside from Skyclarys, Zurzuvae and Leqembi. Baird reiterated an Outperform rating with a $250 price target, calling the quarter "solid overall." Oppenheimer also raised its target to $250, citing a favorable long-term growth outlook.
Collectively, the post-earnings responses show a mix of caution and optimism among sell-side firms: multiple shops moved targets higher on stronger revenue and pipeline signals, yet concerns remain about legacy franchise erosion. Market participants will be watching the progression of Leqembi uptake and the pace of MS segment declines as drivers of forward consensus revisions and valuation shifts.
Key points
- Piper Sandler raised its Biogen price target to $177 from $157 while maintaining a Neutral rating; the new target is below Biogen's trading price of $196.07.
- Biogen reported Q4 2025 non-GAAP EPS of $1.99 and revenue around $2.28 billion to $2.3 billion, beating consensus revenue expectations and contributing to significant share gains over six months.
- Multiple analysts raised their targets after the quarter, reflecting confidence in pipeline assets including Leqembi, Skyclarys and Zurzuvae, though views remain mixed on long-term growth.
Risks and uncertainties
- Continued heavy exposure to a declining legacy multiple sclerosis segment may limit Biogen's long-term growth profile and weigh on valuation. This risk directly impacts healthcare and biotech market segments.
- Significant quarter-over-quarter and year-over-year declines in reported earnings introduce uncertainty about near-term profit recovery and could pressure investor sentiment in the healthcare and broader equity markets.
- The Piper Sandler price target still sits below the current share price, creating valuation risk for investors if commercial growth or pipeline progress slows; this risk affects investors and financial markets tracking biotech stocks.