12 Best Healthcare Stocks to Buy According to Analysts

5) Biogen Inc. (NASDAQ:BIIB)

Number of Hedge Fund Holders: 49

Average Upside Potential: 75.4%

Biogen Inc. (NASDAQ:BIIB) discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases. Oppenheimer reiterated its “Outperform” rating and a price target of $255.00 on the company’s shares. Biogen Inc. (NASDAQ:BIIB)’s commercial strategies are expected to enhance the uptake of Leqembi.  Furthermore, the company continues to focus on its pipeline, with expected regulatory filings and late-stage trial results supporting product launches post-2027. Oppenheimer also noted the company’s disciplined approach to capital allocation, which is expected to result in operating margin expansion.

The firm’s views underscore Biogen Inc. (NASDAQ:BIIB)’s leadership position in Alzheimer’s Disease (AD) treatment, the potential for capital allocation, and the optionality offered by its pipeline. Furthermore, Oppenheimer lauded the multifaceted approach the company is adopting to maintain and grow its market position over the upcoming years. Biogen Inc. (NASDAQ:BIIB)’s focus on developing therapies for neurological and neurodegenerative diseases has placed it well as a critical player in the industry.

Despite challenges, Leqembi is expected to remain a significant opportunity for the company. Positive real-world experiences, together with manageable administration, are expected to fuel wider adoption. Patient Capital Management, a value investing firm, released its Q2 2024 investor letter. Here is what the fund said:

“Biogen Inc. (NASDAQ:BIIB) is another name that we believe is underappreciated. As a global biopharmaceutical business, the company is most well known for their products in multiple sclerosis, spinal muscular atrophy, and most recently Alzheimer’s disease. The new CEO, Christopher Viehbacher, is working to improve the company’s pipeline, most recently with their acquisition of Human Immunology Biosciences Inc. in May. Chris has a strong track record of successful M&A and we expect him to continue that tradition. More importantly, we think the market is currently giving the company no credit for success in their Alzheimer’s indication. While the uptake in Leqembi, their Alzheimer’s product, has been slow, we still see strong long-term potential for a patient population that is dramatically underserved. We find the risk/reward extremely attractive.”