5 Most Undervalued Quality Stocks To Buy According To Hedge Funds

3. Biogen Inc. (NASDAQ:BIIB)

Number of Hedge Fund Holders: 70

P/E Ratio as of January 25: 14.89

Biogen Inc. (NASDAQ:BIIB) is a Massachusetts-based company that discovers, develops, and commercializes therapies for treating neurological and neurodegenerative diseases. On January 10, Brian Abrahams, an analyst from RBC Capital, commented on the FDA’s Summary Review of Leqembi, also known as lecanemab, that is now available. He believes that given the benefit/risk assessment appears to take into account the reported Phase III results and recent deaths in the open-label extension, there is a very high probability that the drug will be fully approved in the second half of 2023 without any major changes to the labeling, unless there are any major safety concerns. The analyst maintained that he is a buyer of Biogen Inc. (NASDAQ:BIIB) on account of the underappreciated long-term opportunity in Alzheimer’s and the likely pipeline reboot under new management, and has an Outperform rating on the shares with a price target of $362.

According to Insider Monkey’s third quarter database, 70 hedge funds were long Biogen Inc. (NASDAQ:BIIB), compared to 54 funds in the prior quarter. Steve Cohen’s Point72 Asset Management is the largest stakeholder of the company, with 1.67 million shares worth $448 million. 

ClearBridge Investments made the following comment about Biogen Inc. (NASDAQ:BIIB) in its Q3 2022 investor letter:

“Biogen Inc. (NASDAQ:BIIB) was the leading contributor among several biopharma names, boosted by positive, pivotal clinical data for its next-generation Alzheimer’s treatment Lecanemab. In a pivotal trial, the drug proved safe and efficacious in slowing progression of Alzheimer’s disease.”