Morgan Stanley double upgrades Biogen, predicts 30% rally

The exterior of the headquarters of biotechnology company Biogen in Cambridge, MA is pictured on March 21, 2019.
John Tlumacki | Boston Globe | Getty Images

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Biogen received a rare double upgrade on Monday from Morgan Stanley, which advised clients that the stock is set for a 30% rally and that long-term rewards for owning the equity more than offset any near-term risks from rivals.

In hiking his rating to overweight from underweight, analyst Matthew Harrison wrote investors aren't giving the company enough credit for its compelling Alzheimer's candidate. Such a breakthrough could have unprecedented health outcomes as well as spell significant upside for the stock, he wrote.

Biogen shares rallied 2.9% in premarket trading following the Morgan Stanley double upgrade.