Biogen Inc. (BIIB), based in Cambridge, Massachusetts, is a leading biotechnology company focused on developing and delivering innovative therapies for neurological and neurodegenerative diseases. With a market cap of $20.6 billion, Biogen specializes in treatments for conditions such as multiple sclerosis (MS), Alzheimer’s disease, spinal muscular atrophy, and other neurological disorders.
Shares of this leading biotechnology company have significantly underperformed the broader market over the past year. BIIB has declined 36.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. In 2025, the stock remains under pressure, down 8% year-to-date, trailing the SPX’s 2.2% gain.
Narrowing the focus, BIIB has also struggled to keep up with the iShares Neuroscience and Healthcare ETF (IBRN). The exchange-traded fund has dropped marginally over the past year. Moreover, the ETF’s marginal decline gain on a YTD basis outshines the stock’s high-single-digit loss over the same time frame.
On Feb. 12, BIIB released its Q4 earnings report, with a 3% increase in revenue, totaling $2.46 billion, surpassing analyst expectations of $2.41 billion. Adjusted earnings per share rose 17% to $3.44, exceeding the projected $3.35. Despite these positive results, the company issued a cautious outlook for 2025, forecasting adjusted EPS between $15.25 and $16.25, below the anticipated $16.33. This conservative guidance, coupled with a projected mid-single-digit percentage decline in sales, led to a 4.3% drop in Biogen's stock price following the announcement.
For the current fiscal year, ending in December, analysts expect BIIB’s EPS to plunge 3.9% to $15.83 on a diluted basis. The company’s earnings surprise history is solid. It beat the consensus estimate in each of the last four quarters.
Among the 33 analysts covering BIIB stock, the consensus is a “Moderate Buy.” That’s based on 15 “Strong Buy” ratings, one “Moderate Buy,” and 17 “Holds.”
This configuration is less bullish than two months ago, with 16 analysts suggesting a “Strong Buy.”
On Feb. 18, Piper Sandler Companies (PIPR) analyst David Amsellem lowered Biogen’s price target to $135 from $138 while maintaining a “Neutral” rating following its quarterly results.
The mean price target of $198.86 represents a 41.4% premium to BIIB’s current price levels. The Street-high price target of $342 suggests an ambitious upside potential of 143.2%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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