Biogen’s Long-Term Potential Overshadowed by Near-Term Challenges: Hold Rating Justified

J.P. Morgan analyst Chris Schott has maintained their neutral stance on BIIB stock, giving a Hold rating today.

Chris Schott has given his Hold rating due to a combination of factors impacting Biogen’s current and future prospects. While Biogen’s acquisition of felzartamab shows promise as a long-term growth driver, particularly in addressing unmet needs in rare immune-mediated conditions, the benefits are not expected to materialize until 2027-2029. This timeline suggests that the asset will not contribute significantly to Biogen’s growth in the near term.
Additionally, despite some positive developments, such as potential catalysts from Alzheimer’s studies, Biogen faces challenges with its core portfolio and slower-than-expected growth from key products like Leqembi and Skyclarys. These factors, combined with the competitive landscape in some of its target markets, contribute to a cautious outlook, justifying the Hold rating as investors await clearer indications of future performance improvements.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BIIB in relation to earlier this year.