Goldman Sachs initiates Neurocrine Bio. stock with Buy rating on growth outlook

Published 10/07/2025, 08:16
Goldman Sachs initiates Neurocrine Bio. stock with Buy rating on growth outlook

Investing.com - Goldman Sachs initiated coverage on Neurocrine Biosciences (NASDAQ:NBIX) with a Buy rating and a price target of $182.00. The stock, currently trading at $133.51, has demonstrated strong financial health with an InvestingPro Overall Score of 3.51 (GREAT).

The investment bank cited Neurocrine’s attractive growth profile compared to mid-cap peers, highlighting the ongoing Crenessity launch and intermediate-term commercial outlook for Ingrezza.

Goldman Sachs projects 11% compound annual growth rate (CAGR) through 2030 and 7% CAGR through 2035 for Neurocrine’s revenues, which exceeds the peer median of 9% and 4% respectively.

Despite this growth trajectory, the firm notes that Neurocrine currently trades at approximately a 10% discount to peers on peak EV/revenue and P/E ratio metrics, reflecting market concerns about the company’s long-term growth outlook.

Goldman Sachs also mentioned Neurocrine’s high-risk pipeline, particularly its muscarinic assets, which it described as a "show-me" story with significant upside potential pending positive clinical development results over the next several years.

In other recent news, Neurocrine Biosciences has experienced several notable developments. UBS raised its price target for the company to $174, citing positive signs from the launch of its Crenessity drug, with expectations of 400 new patient starts in the second quarter and projected revenues of $25 million, surpassing consensus estimates. Neurocrine also reported significant findings from its Phase 3 KINECT-HD study, where its drug Ingrezza showed improvements in cognitive and motor symptoms in Huntington’s disease patients. Additionally, the company presented data highlighting quality of life improvements for older adults with tardive dyskinesia using Ingrezza. In corporate news, Neurocrine appointed Lewis (JO:LEWJ) Choi as its new Chief Information Officer, bringing extensive experience in information technology and artificial intelligence to the role. Guggenheim analysts maintained a Buy rating on Neurocrine, with a price target of $165, following discussions with the company’s management about growth prospects and upcoming clinical data. Management expressed optimism about the launch trends of Crenessity and the potential for long-term growth in the VMAT2 inhibitor market. The company is also anticipating data from ongoing Phase III programs in major depressive disorder and schizophrenia by 2027-2028.

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