Biogen's (BIIB) announcement that it has appointed Michel Vounatsos as the company's next CEO has sparked commentary from Wall Street analysts, with one expecting the market to find the change a "bit underwhelming" and a peer expressing the view that the hiring reduces the potential for a buyout of the company.

NEW CEO: Last night, Biogen announced that its board has appointed Michel Vounatsos as CEO and member of the board, effective January 6. Vounatsos previously held the position of EVP and Chief Commercial Officer at Biogen. Vounatsos succeeds George Scangos, who has led the company since 2010 and had previously announced that he would step down once a successor was found. 'UNDERWHELMING' CHOICE: Commenting on Biogen's CEO change, Bernstein analyst Aaron Gal told investors that he believes the market will find the appointment of Vounatsos "a bit underwhelming," as he is less known to Wall Street, having taken a public role only since joining Biogen in early 2016. Additionally, Gal noted that "a number of industry leaders" were mentioned as potential CEO picks for the company, and investors had hoped that Biogen would sell itself. Nonetheless, the analyst pointed out that it may not be a bad thing for a new CEO to start his role with low expectations, and reiterated an Outperform rating and $345 price target on the shares.

POTENTIAL TAKEOUT: While the M&A thesis may have already diminished somewhat, Jefferies analyst Brian Abrahams said he believes the hiring of internal candidate Vounatsos as CEO reduces the near-term potential for a takeout of the company, as it likely looks to continue an independent course for now. In a research note of his own, Abrahams told investors that the hiring likely represents an evolution, reflecting a current state of affairs that would benefit from a leader with operational and capital allocation expertise. He reiterated a Hold rating and $310 price target on the shares. Meanwhile, Leerink analyst Geoffrey Porges noted that Biogen's stock may selloff modestly over the next few days, given the perception that an acquisition of the company is less likely. However, unlike his peer at Jefferies, Porges believes the magnitude of the change in assumed probability of a transaction is only modest, and the opportunity in Biogen for an acquirer remains real. Nonetheless, investors are unlikely to view Vounatsos' appointment, with his strictly commercial background, as a great source of near-term upside or improved strategic, tactical or financial decision making, he contended. Porges reiterated an Outperform rating and $355 price target on the shares.

INFLECTION POINT EITHER WAY: While Piper Jaffray analyst Joshua Schimmer acknowledged that whether Biogen's new CEO appointment marks an inflection point for a company that has "multiple shortcomings" remains to be seen, he noted that "at least it is change, and with that comes hope." Moreover, Schimmer told investors that it coincides with what may be a natural inflection for Biogen anyway. The analyst pointed out that he expects shares to be volatile as the various forces play out, but ultimately should move higher driven by the "strong" launch of its Spinraza treatment for spinal muscular atrophy and prospects for aducanumab. He reiterated an Overweight rating and $335 price target on Biogen shares.

PRICE ACTION: In morning trading, shares of Biogen have advanced about 1.2% to $282.