In a research note issued today, J.P. Morgan analyst Cory Kasimov reiterated an Overweight rating on Biogen Idec (NASDAQ:BIIB) and slightly raised his price target to $407 (from $400), which implies an upside of 20% from current levels.
Kasimov commented: “We’re providing updated thoughts on BIIB following a series of calls (with docs and the co), a buy side survey, and a complete re-build of the model. In our view, BIIB’s pipeline is one of the most compelling in large cap biotech, with highly innovative programs like LINGO in MS and various Alzheimer’s assets that, while early stage, have the potential to produce high profile data in 2015. Beyond the innovative pipeline, strength in MS (Tecfidera specifically) and hemophilia should drive top and bottom line growth. All in, we anticipate this combination of meaningful earnings growth plus significant pipeline optionality to generate investor interest in 2015.”
The analyst concluded, “While BIIB trades at a slight premium on a 2015 P/E basis to biotech and pharma comps (20.9x vs. 17.9x and 20.1x), we believe it is justified and see further upside driven by de-risking data updates (with a focus on LINGO data in Jan and BIIB037 data in Alzheimer’s in 2015).”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a total average return of 18.4% and a 55.6% success rate. Kasimov is ranked #458 out of 3427 analysts.