Dollar edges higher ahead of Fed minutes; sterling gains after CPI increase
On Tuesday, Piper Sandler adjusted its price target for Neurocrine Biosciences (NASDAQ:NBIX), reducing it to $154 from the previous $160, while maintaining an Overweight rating on the stock. The firm’s analysts anticipate an increase in prescription growth for Ingrezza, Neurocrine’s flagship product. According to InvestingPro data, analyst targets for NBIX range from $115 to $192, with the stock currently appearing undervalued based on Fair Value analysis.
Neurocrine Biosciences reported first-quarter 2025 earnings, revealing a diluted non-GAAP EPS of $0.70 on revenue of $572.6 million. These figures surpassed Wall Street’s expectations, which had estimated an EPS of $0.54 and revenue of $559.6 million. The company maintains strong financial health, with InvestingPro reporting a healthy current ratio of 3.4 and impressive gross margins of 67.5%. Despite the price target adjustment, the company’s management has reaffirmed its 2025 guidance for Ingrezza, projecting sales between $2.5 billion and $2.6 billion. This forecast suggests an approximate 10% growth at the midpoint.
Ingrezza sales experienced a growth of about 8% in the first quarter of 2025 compared to the same period the previous year. This growth contributes to the company’s impressive overall revenue growth of 24.8% over the last twelve months. Piper Sandler’s analysts expect that, even with a potential increase in the gross-to-net due to greater payer contracting, prescription growth will also rise, supporting the view that the 2025 sales guidance is still achievable.
Additionally, the firm noted the early success of Crenessity, another product from Neurocrine Biosciences, which is starting to gain traction and is likely to become a significant factor in investor sentiment for NBIX shares as the year progresses. The analysts believe that the performance of Crenessity could alleviate the pressure on Ingrezza to deliver aggressive growth. For deeper insights into Neurocrine’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers this and over 1,400 other top US stocks.
Projecting into the future, Piper Sandler foresees a long-term EBITDA compound annual growth rate (CAGR) for Neurocrine Biosciences from 2026 onwards that could be in the high teens. The reiteration of the Overweight rating, despite the lowered price target, reflects confidence in the company’s growth trajectory and product portfolio. This outlook aligns with the company’s attractive PEG ratio of 0.96, suggesting the stock is trading at a reasonable valuation relative to its growth prospects.
In other recent news, Neurocrine Biosciences reported its Q1 2025 earnings, which fell short of analyst expectations, with earnings per share (EPS) at $0.70 compared to the projected $0.77. The company’s revenue for the quarter was $572.6 million, missing the anticipated $593.71 million. Despite this, sales of their flagship product, Ingrezza, reached $545 million, reaffirming the company’s guidance for 2025 sales between $2.5 billion and $2.6 billion. Evercore ISI and Needham both raised their price targets for Neurocrine, to $190 and $139 respectively, highlighting strong new patient starts for Ingrezza and exceeding sales expectations for Crenessity. Evercore ISI noted continued strong physician interest and designated Neurocrine as one of its top picks, while Needham pointed to expanded payer coverage and increased sales force as drivers for future growth. Additionally, the company reported a robust cash position of approximately $1.8 billion, supporting its strategic initiatives. Investors are also looking forward to key data readouts for Neurocrine’s pipeline, including Phase 3 results for valbenazine in schizophrenia and dyskinetic cerebral palsy, expected in mid to late 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.