Analyst: Biogen Idec Gains Are Done

Biogen Idec Inc. (NASDAQ: BIIB) has had a great 2012. Actually, it has had a hell of a year with a gain of almost 40% year to date. When you compare this to the iShares Nasdaq Biotechnology (NASDAQ: IBB) ETF, that ETF has risen by about 34% so far in 2012. The problem is that Wall St. and the investment community has a "What will you do for me tomorrow?" mentality.

One research note from Tuesday suggest that the great gains from Biogen Idec are done. With shares around $152.65 now, Canaccord Genuity has initiated the MS-leader in biotech with a Hold rating. If you consider that the price target objective is only $144 for the next 12-months, that Hold rating may sound like more of a Sell rating. Canaccord Genuity said that it expects a slower than consensus BG-12 launch, but ultimately it does see blockbuster potential. The firm also noted:

As far as what this means with a current price of $152.65, the 52-week trading range is $109.22 to $157.18. Thomson Reuters has a consensus price target of about $159.23, although we would note that the street-high price target is $184 on Biogen Idec.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Analyst Calls, Biotech, Healthcare Tagged: BIIB, IBB