Morgan Stanley just upgraded this large cap biotech stock

Regeneron Pharmaceuticals Inc (NASDAQ: REGN) is now back to near its year-to-date high but a Morgan Stanley analyst says the stock is not done pleasing its investors yet.

Regeneron stock has another 20% upside

On Friday, Matthew Harrison upgraded the biotech name to “overweight” and announced a price objective of $851 a share that translates to a 20% upside on its previous close. The analyst wrote:

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Overall, we now see REGN as the preferred large cap growth name supported by a range of products delivering durable revenues and an advancing oncology pipeline with the potential to diversify the base business.

Interestingly, the bullish call arrives only days after insiders were reported to have sold $16 million worth of the Regeneron stock.

Last month, the Nasdaq-listed firm reported its financial results for the second quarter that topped Wall Street estimates.

What will drive future growth?

A day earlier, Regeneron Pharmaceuticals Inc said “Eylea” – its treatment for retinal diseases showed promising results in a trial when used in high dosage.

Harrison expects it will continue to grow share moving forward and also sees potential in “Dupixent” to be a catalyst for the stock as well. He added:

Investors underappreciated the impact of the recent co-stim data and we believe oncology can be a multi-billion-dollar franchise. We see novel assets like bio-specifics and costimulatory antibodies as the key to driving major upside.

Dupixent is the company’s monoclonal antibody for atopic dermatitis. That Tarrytown-headquartered company is currently trading at a forward price-to-earnings multiple of under 16.