This afternoon we are making an additional rating change:
Moving Biogen (BIIB) from BUY to SELL
With the shares trading at record highs, up more than 40% today, on the news that their aducanumab treatment for Alzheimer’s received FDA approval, we are moving BIIB shares from BUY to SELL.
In response to news of the FDA’s approval, BIIB shares have surged to over 400 (at one point reaching 468). We believe the treatment has immense potential, yet the share price embeds a tremendous amount of this potential. Also, some of the price surge is likely due to short covering, which could lead to a fall-off in the price in the near future.
Biogen shares have produced an 72% gain, based on rapidly changing mid-afternoon prices.