Regeneron (NASDAQ:REGN) was lifted to Outperform from Sector Perform at RBC Capital on Friday, with analysts raising the price target for the stock to $1,076 from $884 per share.
Analysts noted in a memo to clients that REGN has a "prolific" R&D engine. They also pointed to its Dupi success and good HD start.
"We have long been enthusiastic about Dupi's sales prospects and many of REGN's pipeline programs, but have remained on the sidelines due to concerns around Street over-optimism for the Eylea franchise," explained the analysts.
"However, things have changed, with a number of recent wins - strong Eylea HD data and initial market conversion, Dupi COPD trial successes, aflibercept biosimilar litigation victory, good pipeline progress - that should reduce pressure on NT Eylea commercial performance and provide increased visibility around medium/long-term growth," they added.
The analysts acknowledged that REGN shares have appreciated, and some people may prefer to wait for a pullback before stepping in. Still, they believe that with the near-term overhangs removed and there being "considerable room for additional fundamental upside," it is "as good a time as any to own one of the most dynamic all-around stories in large-cap biotech."