RBC Capital lifts Neurocrine Bio. stock target to $145 on sales momentum

Published 06/05/2025, 15:40
RBC Capital lifts Neurocrine Bio. stock target to $145 on sales momentum

On Tuesday, RBC Capital Markets adjusted their outlook on Neurocrine (NASDAQ:NBIX) Biosciences, Inc. (NASDAQ: NBIX), a $12.2 billion biopharmaceutical company with a GREAT financial health score according to InvestingPro, by increasing the price target from $137.00 to $145.00, while maintaining an Outperform rating for the company’s shares. The revision reflects a positive view on the company’s recent commercial performance and future prospects, supported by impressive revenue growth of nearly 25% over the last twelve months.

The firm’s analyst, Brian Abrahams, noted that Neurocrine Biosciences exhibited surprising commercial momentum which could help alleviate near-term uncertainties for investors. This assessment was largely based on the strong sales of Ingrezza, a treatment for tardive dyskinesia, and the company’s ability to maintain its financial guidance. The company’s solid financial position is evident in its healthy current ratio of 3.4 and moderate debt levels, as revealed by InvestingPro data. High patient start rates and broadening access are expected to balance out what is seen as manageable price pressure from contracting efforts.

Abrahams also pointed out that Crenessity, another product from Neurocrine Biosciences’ portfolio, has had a promising launch. Although there is a suspicion that an initial surge in demand, referred to as a bolus effect, may have boosted early sales figures, the overall start is considered to be solid.

The analyst’s commentary highlighted that, with some of the uncertainties now being addressed, Neurocrine Biosciences could be perceived once more as a stable investment. The company appears to be well-shielded from broader macroeconomic factors, which adds to its appeal. The new price target of $145 is based on adjustments made to the firm’s financial model.

Neurocrine Biosciences’ financial performance and strong product sales have positioned the company favorably in the eyes of RBC Capital Markets. The firm’s confidence in the company’s ability to continue its growth trajectory is encapsulated in the revised price target and the sustained Outperform rating.

In other recent news, Neurocrine Biosciences reported first-quarter 2025 earnings with a diluted non-GAAP EPS of $0.70 on revenue of $572.6 million, surpassing Wall Street’s expectations of an EPS of $0.54 and revenue of $559.6 million. However, the earnings fell short of some analyst expectations, with revenue missing the anticipated $593.71 million. Despite this, Neurocrine reaffirmed its 2025 sales guidance for Ingrezza, projecting sales between $2.5 billion and $2.6 billion. BMO Capital Markets raised Neurocrine’s stock target to $115, citing impressive early performance of the product Crenessity, while Piper Sandler reduced its price target to $154, maintaining an Overweight rating. Needham also adjusted its price target to $139, following positive earnings results and strong Ingrezza sales. Evercore ISI lifted the stock target to $190, highlighting the significant turnaround in performance and the record number of new patient starts for Ingrezza. These developments indicate a mixed but generally positive sentiment among analysts regarding Neurocrine Biosciences’ growth trajectory and market position.

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