Regeneron Just Moved From Underperform To Buy - Here's Why

Core Viewpoint - Analyst sentiment towards Regeneron Pharmaceuticals has shifted positively, with Bank of America upgrading the stock from Underperform to Buy and raising the price target from $627 to $860, driven by higher sales for key products [1] Group 1: Product Performance - The previous Underperform thesis on Eylea SD has largely played out, leading to lower consensus estimates, while the outlook for Eylea HD has improved due to multiple label expansions, with forecasts now significantly above consensus [2] - For 2026, U.S. Eylea franchise revenues are projected to reach $4.35 billion, indicating strong growth potential [3] Group 2: Pipeline and Collaborations - Additional upside is anticipated from Dupixent, in partnership with Sanofi, along with pipeline developments such as the Phase 3 fianlimab melanoma readout expected in the first half of 2026 [3] - A global collaboration with Tessera Therapeutics for TSRA-196, aimed at treating alpha-1 antitrypsin deficiency, was announced in December 2025, highlighting ongoing innovation [4][5] Group 3: Market Sentiment and Stock Performance - Regeneron shares experienced a 4.60% increase, reaching $812.27, marking a new 52-week high, reflecting positive market sentiment [6] - Anticipated positive updates from a competitor conference in January and a likely favorable resolution regarding Regeneron's Most Favored Nation discussions with the White House could further enhance stock performance [4]