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:

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:

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.