TLDR
- Wolfe Research upgraded both Biogen and AbbVie to Outperform, setting a $300 price target for each
- Biogen’s late-stage pipeline drugs litifilimab and felzartamab were flagged as key growth assets
- AbbVie’s patent on Rinvoq was pushed out to 2037, removing a major near-term patent cliff concern
- AbbVie posted Q2 revenue of $16.99 billion, up 10.2% year over year, beating analyst estimates
- Biogen beat Q2 earnings estimates with EPS of $3.60 versus the $2.94 consensus
Wolfe Research upgraded both Biogen and AbbVie to Outperform on Thursday, giving each company a $300 price target. The upgrades were based on pipeline strength, attractive valuations, and upcoming clinical data readouts.
Biogen Gets a Boost From Late-Stage Pipeline Drugs
Biogen has been trading at a discount to the broader market, something Wolfe Research says does not reflect the full value of its pipeline. The firm raised its rating from Peer Perform and set a $300 target.
Two drugs are central to Wolfe’s case for Biogen. Litifilimab could become the first biologic approved for cutaneous lupus erythematosus. Felzartamab may address antibody-mediated rejection in a larger commercial market than Wall Street currently estimates.
Biogen also acquired Apellis Pharmaceuticals, which strengthens its near-term revenue base through two approved drugs, Empaveli and Syfovre.
The company beat earnings expectations in its most recent quarter. It posted EPS of $3.60 against a consensus of $2.94, and revenue came in at $2.74 billion, up 3.4% year over year. Biogen has set full-year 2026 guidance of $12.00 to $13.00 EPS.
Institutional ownership in Biogen stands at 87.93%. Handelsbanken Fonder raised its stake by 12.7% in the second quarter, bringing its holdings to 93,236 shares worth around $20.14 million.
The stock’s consensus rating is Moderate Buy, with an average analyst price target of $224.61. Shares opened at $208.87 on Thursday, near the 52-week high of $219.72.
AbbVie Sees Patent Protection and Revenue Growth Drive Upgrade
Wolfe also raised AbbVie from Peer Perform to Outperform. The firm said AbbVie’s 2027 earnings multiple of 14.6 times looked too low for a company expected to deliver high-single-digit revenue growth through the rest of the decade.
A key reason for the upgrade is patent protection. Rinvoq’s expected generic competition has been pushed to 2037, and AbbVie is defending Skyrizi’s patent position. That could leave the company without a major patent cliff this decade.
AbbVie reported second-quarter revenue of $16.99 billion, up 10.2% from a year ago, beating the consensus estimate of $16.80 billion. EPS came in at $3.65, just above the $3.61 estimate.
Skyrizi and Rinvoq remain the main growth drivers. Canada’s Drug Agency also recommended reimbursement of Ubrelvy for acute migraine treatment, adding another potential revenue stream.
The company’s acquisition of Apogee Therapeutics was approved by shareholders but adds roughly $8 billion in debt, which some analysts flag as an execution risk.
AbbVie carries a consensus Moderate Buy rating and an average price target of $274.33. The stock opened at $249.12 on Thursday.
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