Bank of America (BofA) has increased its price target for Royalty Pharma (RPRX, Financial) from $41 to $42 while maintaining a Buy rating on the stock. This adjustment comes as part of BofA's preview of the first-quarter earnings season for its commercial-stage biopharma coverage.
BofA highlights that the first quarter is typically challenging for this sector due to seasonal influences, often resulting in what some describe as the "messiest" quarter. Companies in this space are frequently given leeway during this time with the expectation that growth and results will become more favorable in the latter half of the year.
Despite these challenges, Royalty Pharma’s prospects appear resilient, prompting the upward revision in its price target. However, the firm notes that upcoming results might still be overshadowed by broader economic concerns, particularly the potential impact of pharmaceutical tariffs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Royalty Pharma PLC (RPRX, Financial) is $35.44 with a high estimate of $41.00 and a low estimate of $27.77. The average target implies an upside of 9.09% from the current price of $32.49. More detailed estimate data can be found on the Royalty Pharma PLC (RPRX) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Royalty Pharma PLC's (RPRX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Royalty Pharma PLC (RPRX, Financial) in one year is $39.12, suggesting a upside of 20.41% from the current price of $32.49. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Royalty Pharma PLC (RPRX) Summary page.
