Biogen (BIIB) demonstrated solid commercial execution across its core franchises, supporting a clearer path to long-term EPS growth opportunities, RBC Capital Markets said.

The brokerage said in a Friday note that the company has delivered predictable results and its stable expense management is reinforcing a strong foundation into a catalyst-rich year ahead.

The company posted solid product sales, with its multiple sclerosis group showing resilience. Tysabri stood out with $398 million in revenue, above the $349 million consensus estimate, contributing to a bottom-line EPS beat of $1.99 versus $1.63 consensus.

RBC noted that investors may be undervaluing the resilience of the US market despite biosimilar entry.

Near-term pipeline readouts carry a higher risk, but the brokerage said investor focus is expected to shift toward more likely, high-opportunity catalysts by year-end, beginning with litifilimab phase 3 results in systemic lupus erythematosus and followed by felzartamab in 2027.

Leqembi also remains a key growth driver, with US sales of $78 million surpassing above-Street expectations. The investment firm estimates the drug to reach $735 million in worldwide sales. Business development continues to be important for bolstering the pipeline, with management targeting $5 billion to $6 billion in late-stage acquisitions.

RBC maintained the company's stock rating at outperform and increased the price target to $233 from $217.

Shares of Biogen were down nearly 3% in recent Monday trading.

Price: 195.77, Change: -5.42, Percent Change: -2.69