Biogen (BIIB) showed how it has "successfully" reprioritized R&D and rightsized operating expenses in Q4 results and guidance, RBC Capital Markets said in a note Wednesday.

RBC analysts, including Brian Abrahams, said the question now is what exactly this is all paving the way for amid soft Skyclarys sales and a slower than expected Leqembi uptake.

"The stock continues to overly discount the fundamental worth of the business, such that if they can start to address any of these...the narrative could rejuvenate and this disconnect close," the analysts said.

They said the shares may be settling closer to a bottom due partly to the slow Leqembi uptake and generic competition against its multiple sclerosis business.

"We see limited additional downside from here, and given what appears to be poor buy-side sentiment on the name, we believe this creates an attractive entry point for shares," they said.

RBC cut its price target to $225 from $231 while keeping its outperform rating.

Price: 136.36, Change: +2.93, Percent Change: +2.20