Wolfe Research lifts Biogen, AbbVie to buy on pipeline, valuation
Analysts cite robust drug pipelines and discounted valuations as reasons for the upgrades. Shares of both biotech firms rise in premarket trading.
Wolfe Research upgraded Biogen and AbbVie to buy from hold on Monday, citing strong drug pipelines and attractive valuations.
The firm raised its price target on Biogen to $380 from $320, representing a 25% premium to the stock’s last close. For AbbVie, Wolfe set a target of $220, up from $190, implying a 15% upside potential. Analysts highlighted Biogen’s focus on neurological treatments and AbbVie’s diversified portfolio, including immunology and neuroscience assets, as key drivers of their optimism.
Biogen’s shares rose 2.1% in premarket trading following the upgrade, while AbbVie gained 1.8%. Wolfe’s rating changes reflect broader investor confidence in biotechnology stocks amid improving drug development pipelines and stabilizing valuations after recent market volatility.
The upgrades come as both companies face patent expirations on key revenue-generating drugs. Biogen’s multiple sclerosis franchise remains a core asset, while AbbVie’s Humira biosimilars continue to pressure revenue growth. Analysts expect these challenges to be offset by newer pipeline drugs, including experimental treatments for Alzheimer’s and Parkinson’s diseases.
Wolfe Research’s upgrades underscore a constructive view on the biotech sector, where pipeline visibility and valuation discipline are increasingly influencing investor sentiment.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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