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On Friday, Cantor Fitzgerald reaffirmed its Overweight rating on Neurocrine Biosciences stock (NASDAQ:NBIX) with a consistent price target of $170.00. Currently trading at $150.51, the stock has shown strong momentum with a 10.26% gain year-to-date. According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $140 to $192. The research firm’s analysts updated their financial model for the company, which included adjustments to drug sales estimates and extending their discounted cash flow (DCF) analysis.
The update involved increasing the sales estimates for Crennesity, a product in Neurocrine’s portfolio, while reducing the projections for Ingrezza, another key drug. The company has demonstrated strong financial performance, with revenue growing 25.72% over the last twelve months to $2.24 billion. Additionally, Cantor Fitzgerald introduced quarterly estimates for the year 2026 and extended their DCF valuation model to include the year 2032.
Despite these changes, the analysts found that the adjustments neutralized each other, leaving the price target unchanged. The firm’s analysts believe that while the company’s portfolio may be perceived as speculative, there is potential value in acquiring bolt-on assets that are less risky to enhance the company’s offerings.
The commentary from Cantor Fitzgerald suggests that investors generally concur that Neurocrine Biosciences’ portfolio could benefit from strategic acquisitions. The firm’s analysts noted that even though the CEO’s tenure is relatively new, there is an opportunity for the company to bolster its asset base.
The reiteration of the Overweight rating implies that Cantor Fitzgerald’s analysts expect the stock to outperform the average return of the stocks they cover over the next 12 to 18 months. The price target of $170.00 is indicative of the firm’s confidence in the company’s potential for growth and value creation. InvestingPro analysis shows the company maintains excellent financial health with a "GREAT" overall score, supported by strong profitability metrics and robust cash flows. Get access to 14 additional ProTips and comprehensive valuation metrics with an InvestingPro subscription.
In other recent news, Neurocrine Biosciences has been the subject of several analyst reports. Canaccord Genuity lowered its price target for the company to $163, citing a reevaluation of sales projections for its product, Ingrezza, while maintaining a Buy rating. BofA Securities also adjusted its outlook, reducing the price target to $179 from $184, despite a reported increase in full-year 2024 Ingrezza revenues. The company also revealed its sales projections for fiscal year 2025, indicating a 10% growth at the midpoint.
Stifel analysts maintained a positive outlook and kept a steady price target of $166, following Neurocrine’s announcement of an altered partnership with Takeda on the AMPA program. The company now holds full worldwide development and commercialization rights, except in Japan, for the drug osavampator/NBI-845. Oppenheimer also reiterated its Outperform rating, with a steady price target of $192, highlighting the recent FDA approval of Crenessity for the treatment of congenital adrenal hyperplasia (CAH).
Neurocrine Biosciences sponsored a supplement in The Journal of Clinical Endocrinology & Metabolism focusing on classic congenital adrenal hyperplasia (CAH), a rare genetic condition. The supplement discussed the challenges and advances in treatment, including CRENESSITY, an oral medication developed by Neurocrine Biosciences. These are the latest developments in the company’s recent activities.
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