RBC Capital sees Biogen stock undervaluing Leqembi prospects (NASDAQ:BIIB)
RBC Capital said it sees Biogen’s stock as undervaluing the long-term prospects of its newly approved Alzheimer’s drug Leqembi, with any “better-than-expected acceleration in demand” possibly “reigniting enthusiasm and driving upside” to the shares.
The investment bank said in a note dated Aug. 29 that although zuranolone’s failure to win approval for major depressive disorder was a setback for the company, Biogen’s stock price at $264 “looks to us to substantially undervalue long-term Leqembi prospects.”
RBC Capital said that it expects Lequembi sales “to inflect further in the coming months, with increased efficiencies in screening, formularies and monitoring.” It continues to see the product generate sales of $1.4B in 2026, with peak end-user sales of $10.4B by 2032.
The bank noted that its sales estimates of $1.5M for Q3 and $4.6M for Q4 were below the Street’s consensus of around $10M for Q3 and $27M for Q4, with the Street expecting a larger near-term inflection.
RBC Capital has a $357 price target on the stock, with an outperform rating.