Jay Woods recommended investing in the BioTech ETF and Biogen in particular within the ETF.
- Woods noted that Biogen has multiple focuses across autoimmune kidney diseases and Alzheimer’s, unlike many names in the sector, which rely on a specific drug breakthrough.
- Earlier this week, Biogen disclosed that it expects non-recurring charges of approximately $164 million in Q2 2026.
- Biogen investors now await detailed mid-stage data for its drug diranersen in Alzheimer’s disease, slated to be announced mid-July at a London conference.
Jay Woods, chief global strategist at Freedom Capital Markets, on Thursday recommended investing in the biotech sector, highlighting its strong performance, and identified Biogen Inc. (BIIB) as his top pick for further potential upside.
Shares of BIIB ended Thursday’s session 3.04% higher, before trading flat in after-hours trading at the time of writing.
The analyst opined that the State Street SPDR S&P Biotech ETF (XBI) is “still looking great” and added that they are looking for any pullbacks as an opportunity to buy the ETF. “Buying the ETF is a smart and safer play than trying to find a specific winner,” Woods wrote on CNBC.
Analyst Takeaway
“While the stock has been on a nice run - up 21% year-to-date and 63% over the last 52 weeks - it still looks like the turnaround is truly beginning. Shares remain 52% off their all-time high set back in 2021, so we have something to reverse as well,” Woods said about Biogen.
He also noted that the company has multiple focuses across autoimmune kidney diseases and Alzheimer’s, unlike many names in the sector, which rely on a specific drug breakthrough. “...They continue to make progress and have several drugs in the pipeline.”
Biogen Expects Earnings Impact
Earlier this week, Biogen disclosed that it expects non-recurring charges of around $164 million in Q2 2026 and $290-$320 million in Q3 2026, primarily tied to acquired in-process research and development and milestone payments from recent deals; these are projected to reduce adjusted earnings per share by roughly $0.95 in the second quarter and $1.75–$1.95 in the third.
Last month, Biogen agreed to acquire RayThera Inc. for up to $1 billion to bolster its immunology pipeline with small-molecule anti-inflammatory assets, with the lead candidate slated to enter clinical trials shortly after the anticipated Q3 closing.
Upcoming Catalysts
Biogen investors now await detailed mid-stage data for its drug diranersen in Alzheimer’s disease, slated to be announced mid-July at a London conference. The FDA is also slated to decide on approving a once-weekly at-home subcutaneous starting dose for Biogen’s LEQEMBI by August. If approved, it would let patients begin treatment at home from the start, in addition to the already-approved weekly at-home maintenance dosing.
In June, Needham raised its Biogen price target to $256 from $255 and kept a ‘Buy’ rating, saying it is incrementally more positive after meeting with company management. Morgan Stanley lifted its target to $224 from $206 while maintaining an ‘Equal Weight’ rating, citing upcoming mid-stage diranersen data.
How Did BIIB Retail Traders React?
On Stocktwits, retail sentiment around BIIB stock jumped from ‘neutral’ to ‘bullish’ over the past 24 hours, while message volume remained ‘high.’
BIIB stock has gained 23% year-to-date, while XBI added 32%.
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