Biotech stocks are looking crowded, expert says
The stock has even more upside from where it was trading Friday, around $475 per share, Yaron Werber, senior biotech analyst at Citi Investment Research, told “Power Lunch.” As the Alzheimer’s drug likely will not reach the market for years, it is important to Biogen’s long-term prospects, he said.
When looking at valuations, investors need to consider that low interest rates support risk assets like biotech stocks, Funtleyder said. The sector has popped in the sustained near-zero interest rate environment set by the Federal Reserve.
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Both Funtleyder and Werber noted that companies making drugs in multiple disease areas, such as Biogen, can better sustain their valuations.
“They’re not single drug companies. They can support some of the valuation,” Funtleyder said.
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Biotech stocks are looking crowded, expert says
