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On Tuesday, Deutsche Bank (ETR:DBKGn) began coverage on Neurocrine Biosciences (NASDAQ:NBIX) stock, assigning a Hold rating and setting a price target of $138. The bank’s analyst noted that with a current market capitalization of approximately $12 billion and a P/E ratio of 34.4, Neurocrine’s stock appears to be fairly valued, considering its Ingrezza treatment for TD/HD chorea and Crensessity for CAH. According to InvestingPro analysis, the stock is currently trading near its 52-week low of $110.95, with analysts setting targets between $140 and $192.
The analyst’s projections for the US peak sales of Ingrezza are around $3.0 billion, which is conservative compared to the consensus estimate of $3.4 billion. Similarly, the forecast for Crensessity stands at about $615 million, lower than the consensus estimate of $960 million. The company’s strong financial health is evident in its impressive 24.8% revenue growth over the last twelve months and robust current ratio of 3.4. The analyst expressed a cautious stance, suggesting that for a significant appreciation in Neurocrine’s stock price—exceeding a 20-25% increase—investors would likely need to gain confidence in another asset with a market opportunity comparable to Ingrezza.
The report further discussed Neurocrine’s pipeline, mentioning several potential treatments but indicating that the mid-stage studies of NBI-568 for schizophrenia and osavampator (NBI-845) for major depressive disorder (MDD) have not substantially reduced the risk associated with these assets as they move into Phase 3 development. Looking ahead to 2025, the analyst pointed to a Phase 2 readout for NBI-770 in MDD, but considered it premature to form an opinion on its prospects. For deeper insights into Neurocrine’s pipeline and financial metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
Concluding the coverage initiation, the analyst stated a neutral position, preferring to wait on the sidelines until Neurocrine can present a high-conviction asset that could match Ingrezza’s commercial success. The Hold rating and price target reflect this wait-and-see approach, aligned with InvestingPro’s analysis showing mixed signals, including strong financial health but challenging price momentum.
In other recent news, Neurocrine Biosciences experienced significant attention from various analyst firms. UBS adjusted the company’s stock target to $154, maintaining a Buy rating. This follows a notable share decline due to lower-than-expected guidance for Ingrezza and lack of updates on Crenessity. Guggenheim also maintained a Buy rating, but cut the price target to $163 after fourth-quarter sales of Ingrezza slightly missed consensus estimates. Neurocrine Biosciences reported approximately $615 million in Ingrezza sales for the fourth quarter of 2024, around 1% lower than the market consensus.
H.C. Wainwright maintained a Buy rating on the stock, albeit adjusting the price target to $185 from $190. This followed the company’s announcement that Ingrezza generated revenue of $615 million, a 23% year-on-year increase, but slightly missing the consensus forecast. The firm also noted promising early performance of the company’s newly launched drug, Crenessity.
Cantor Fitzgerald reaffirmed its Overweight rating on Neurocrine Biosciences stock with a consistent price target of $170.00. The firm updated their financial model for the company, which included adjustments to drug sales estimates and extending their discounted cash flow analysis. Despite these changes, analysts found that the adjustments neutralized each other, leaving the price target unchanged. These are all recent developments in the ongoing analysis of Neurocrine Biosciences’ financial performance and potential.
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