This pharmaceutical stock is cheap relative to peers. UBS thinks it’s due for a bounce
Biogen is trading at a discount and could soon rise thanks to a combination of catalysts, making now a good time for investors to scoop up the “out-of-favor” stock, according to UBS. The investment bank upgraded the pharmaceutical name to buy from neutral. It also hiked its price target on shares to $225 from $185, suggesting 21% upside from Tuesday’s close. “We see a nice 12-15 month window of pipeline catalysts on an underowned out-of-favor stock that trades at a discount to large-cap peers,” analyst Michael Yee said in a note to clients. Shares have risen nearly 6% in 2026, outperforming the broader market year to date. However, the stock trades at a discount to the S & P 500 health care sector. Biogen has a forward price-to-earnings ratio of around 12. The sector trades at a multiple of 17, per FactSet. BIIB YTD mountain Biogen has gained nearly 6% in 2026. Biogen is developing an investigational therapeutic called BIIB080 to treat Alzheimer’s disease, which could continue to prove effective in clinical studies this summer. That would offer at least a modest boost to the drugmaker’s stock, according to UBS. “We think positive trends are likely … and BIIB would still move forward on…reduction [of a protein linked to Alzheimer’s] and strong trends on cognitive endpoint,” Yee wrote. “There’s upside skew here up 10-25% vs down maybe 5-10%.” The company will also release data pertaining to a phase-three trial for its lupus drug litifilimab in the fourth quarter, which should also give Biogen stock more room to run. “BIIB could be up 20%+ on positive data in Q4 which would support a [biologics license application] filing for the next leg of their commercial franchise,” Yee wrote. Positive results from another trial for a drug called felzartamab may also boost shares, per UBS. Data linked to the study is expected to come out in the first half of 2027, according to a new note from the bank. Wall Street is split on Biogen. Of the 37 analysts covering the stock, 18 have a buy or strong buy on it, while another 18 have a hold rating on shares, LSEG data shows. However, several shops on the Street seem to be warming up to the stock lately. Earlier this month, Piper Sandler and Wells Fargo also upgraded their ratings for Biogen.
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