Biogen Inc. (NASDAQ:BIIB) gained more than 48% on Wednesday’s stock premarket. The stock was among the top trends on popular social trading platforms. There were definite reasons.
On Tuesday, company news indicated that Biogen and Japanese Eisai had achieved success in Alzheimer’s drug trials. The disease candidate, lecanemab, slowed cognitive decline by 27% in parties under observation for over 18 months. The results indicated a potential breakthrough in addressing the disease menace, Alzheimer. Analysts took note.
On September 28. BMO Capital upgraded Biogen to “outperform” from “market perform. The analysts also increased the price target from $217 to $360. The stock was trading at $197 as of press time. The analysts said the positive report was an “unequivocal win for AD patients and Biogen.”
BMO reiterated a $13.3 billion or £12.55 billion unadjusted lecanemab peak sales. That was an increase from the previous $5.4 billion or £5.09 billion. Similarly, Mizuho analysts assigned a buy rating from neutral, with a price target of $270 from $207.
Biogen is contained by the $280 resistance
With the positive sentiment on Biogen and ratings, Biogen could maintain sentiment. Eyes will turn to key levels as momentum increases.
A breakout above $220 makes a bullish case for Biogen. However, the double-digit intraday gains make Biogen unattractive at the current level. The stock has also met resistance at $280. Investors should consider buying lower.
Alternatively, Biogen could break above the $280 barrier if momentum remains strong. The level could attract buyers and should be closely watched.
When to buy Biogen
Buy Biogen on a retracement towards the $220 support. The alternative is to buy on a breakout at $280. The next resistance is around $370.
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