Why is REGN favored by Wall Street? What does the shift from "Sell" to "Buy" signify?

Analyst Shift Behind the Surge in Stock Price

Wednesday’s news drew market attention—Bank of America Securities upgraded Regeneron Pharmaceuticals (REGN) from “Underperform” to “Buy,” while raising the target price from $627 to $860. This is not a casual change; it reflects a reassessment of the company’s growth prospects. As of the announcement, REGN’s stock price had risen 4.60% to $812.27, hitting a 52-week high, clearly demonstrating market enthusiasm.

Ophthalmology Product Line Becomes Growth Engine

The analyst Tazeen Ahmad’s change in outlook centers on a renewed understanding of Eylea. The previously pessimistic expectations for Eylea SD have largely been realized, but the performance of Eylea HD is a completely different story.

According to Ahmad’s tracking, large medical institutions (which account for most of the anti-VEGF treatments) are shifting toward Eylea HD instead of competitors’ products. The FDA has repeatedly expanded the label, and the anticipated approval of pre-filled syringe injections by mid-2026 is paving the way for this product. BofA predicts that by 2026, REGN’s revenue from the U.S. Eylea business will reach $4.35 billion.

Multiple Growth Tracks Moving Forward Simultaneously

In addition to the revival of Eylea, Regeneron has other highlights:

The continued contribution of Dupixent in collaboration with Sanofi remains a growth driver. By 2026, the product portfolio is expected to include new highlights. The Phase III clinical results of fianlimab (LAG-3) are expected to be announced in the first half of the year, representing a significant advancement in melanoma treatment.

Catalysts Still Ahead

Recent collaboration developments are worth noting. In December, Regeneron announced a global partnership with Tessera Therapeutics to develop TSRA-196, an in vivo gene writing therapy targeting alpha-1 antitrypsin deficiency (AATD)—a genetic disease that may affect the lungs and liver.

In October, Regeneron also released data updates on the DB-OTO experimental therapy, which targets hereditary severe hearing loss caused by otoferlin gene mutations. These are additions to the company’s long-term pipeline.

Additionally, progress in negotiations with the White House regarding (MFN) (Most Favored Nation) could also be a surprise. Positive results could eliminate market concerns about healthcare reform policies.

Market Reaction Is Clear

Wall Street’s upgraded ratings have been validated by stock performance:

• Regeneron Pharmaceuticals (REGN): $812.91 (+4.60%)
• Sanofi (SNY): $47.92 (-0.93%)

From underperforming to worth buying, this shift reflects the market’s new expectations for REGN’s profitability over the next 12-24 months.