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Investing.com - Goldman Sachs has raised its price target on Royalty Pharma (NASDAQ:RPRX) to $45.00 from $42.00 while maintaining a Buy rating following the company’s third-quarter 2025 financial results. According to InvestingPro data, Royalty Pharma is currently trading near its Fair Value and close to its 52-week high of $41.00.
Royalty Pharma shares rose 7% compared to the XBI biotech index’s 1% gain after reporting quarterly results that exceeded expectations. The company raised its 2025 outlook, marking the third consecutive quarter of guidance increases and the 14th since its IPO in 2020. This momentum has contributed to the stock’s impressive 61.5% year-to-date return and 56% gain over the past year, as tracked by InvestingPro.
Goldman Sachs highlighted several standout performers in Royalty Pharma’s portfolio, including Johnson & Johnson’s Tremfya, Vertex Pharmaceuticals’ cystic fibrosis franchise, and GSK’s Trelegy. These assets are delivering on or exceeding commercial expectations, according to the firm.
The investment bank noted Royalty Pharma has deployed approximately $2 billion in 2025, tracking toward its five-year goal of $10-12 billion from 2022-2026, with about $9 billion deployed so far. Multiple pivotal clinical trial readouts are expected in the next 24 months across the company’s development-stage pipeline.
Goldman Sachs views Royalty Pharma as a unique investment vehicle that allows portfolio managers to gain exposure to a curated portfolio of biopharma royalty streams without the volatility and binary risks typically associated with biotech investments. InvestingPro data supports this assessment, showing Royalty Pharma has a low beta of 0.47 and trades at an attractive PEG ratio of 0.31, indicating good value relative to its growth prospects. The company also offers a 2.18% dividend yield and has raised its dividend for six consecutive years. For comprehensive analysis on Royalty Pharma and 1,400+ other stocks, check out the Pro Research Reports available on the InvestingPro platform.
In other recent news, Royalty Pharma Plc announced strong financial results for the third quarter of 2025. The company reported an 11% increase in portfolio receipts, reaching $814 million, attributed to the solid performance of its key products. Furthermore, Royalty Pharma raised its full-year guidance, now projecting portfolio receipts between $3.2 and $3.25 billion, which translates to a growth of 14-16%. These developments highlight the company’s robust financial health and positive outlook for the remainder of the year. Despite these favorable results, the company’s stock experienced a slight premarket decline of 0.77%, which was linked to broader market trends. Investors may find reassurance in the company’s financial performance and guidance, as it underscores the strength of its portfolio. No analyst upgrades or downgrades were reported in relation to these recent developments.
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