On February 13, 2025, Sumant Kulkarni from Canaccord Genuity set a price target of $265 for Biogen Inc. (NASDAQ:BIIB). At the time, the stock was priced at $138.06, suggesting a potential increase of about 91.95%. Biogen, a biotechnology company, focuses on discovering, developing, and delivering therapies for neurological diseases. It competes with companies like Roche and Novartis.
Biogen recently reported strong fourth-quarter earnings, with an adjusted earnings per share (EPS) of $3.44, a 17% increase, surpassing the consensus estimate of $3.35. The company achieved sales of $2.46 billion, a 2% year-over-year increase on a constant currency basis and a 3% increase on a reported basis, exceeding the expected $2.40 billion. This performance highlights Biogen's ability to exceed market expectations.
Despite the positive earnings, Biogen's revenue from multiple sclerosis products declined by 8% to $1.07 billion. Sales of its multiple sclerosis drug, Tysabri, fell to $415.4 million from $464.7 million. This decline in a key revenue stream is a concern for investors, as it impacts the company's overall financial health.
Looking ahead, Biogen anticipates a full-year 2025 adjusted EPS between $15.25 and $16.25, which is below the consensus of $16.34. The company expects revenue to decline by a mid-single-digit percentage in 2025 compared to 2024. This is due to further decreases in multiple sclerosis product revenues, partially offset by new product launches.
Following the earnings announcement, Biogen's shares fell by 4.3%, closing at $133.43. Despite this, the stock has since increased to $138.55, reflecting a 3.84% rise. The stock's trading volume reached 1,225,466 shares, with a market capitalization of approximately $20.19 billion. Sumant Kulkarni maintains a Buy rating on the stock, indicating confidence in its future potential.
