What Happened?
Shares of biotech company Regeneron (NASDAQ: REGN) jumped 2.9% in the morning session after Bank of America Securities upgraded its rating on the company's stock from 'Underperform' to 'Buy' and significantly raised its price target. The firm's analyst, Tim Anderson, lifted the price target to $860.00 from a previous $627.00. This move signaled growing confidence in Regeneron's market prospects. Adding to the positive sentiment, Citi also raised its price target on the shares to $900 from $700 while keeping its 'Buy' rating. Reflecting the bullish analyst actions, the stock reached a new 52-week high, underscoring the positive momentum.
After the initial pop the shares cooled down to $798.51, up 2.8% from previous close.
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What Is The Market Telling Us
Regeneron’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 19% on the news that the company announced mixed results from its Phase 3 trials for itepekimab, an experimental drug for Chronic Obstructive Pulmonary Disease (COPD). While one trial met its primary endpoint, the other missed, raising concerns about the drug's future and delaying its potential market entry. This setback, likely spooked investors and contributed to the significant decline.
Regeneron is up 2.9% since the beginning of the year, and at $798.51 per share, has set a new 52-week high. Investors who bought $1,000 worth of Regeneron’s shares 5 years ago would now be looking at an investment worth $1,659.
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