BofA Securities upgraded Regeneron Pharmaceuticals (NASDAQ: REGN) to Buy from Underperform and raised its price target to $860.00 from $627.00, prompting the stock to rise more than 2% in pre-market trading on Wednesday.

The firm said its prior bearish view tied to Eylea SD had largely played out, as consensus expectations had moved lower. BofA became more constructive on the outlook for Eylea HD following multiple label updates and said its estimates now stood meaningfully above consensus. Additional upside was seen from Dupixent, which Regeneron markets in partnership with Sanofi.

The analyst also highlighted pipeline optionality in 2026, including a Phase 3 melanoma readout for fianlimab, a LAG-3 antibody, expected in the first half of the year. Potential positive updates at a competitor conference in January were cited as another catalyst. BofA further said it expected a favorable outcome from Regeneron's MFN agreement with the White House, which it believed would lift any remaining MFN-related overhang, including a likely exemption from MFN CMMI demonstration projects.