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On Tuesday, UBS analyst Ashwani Verma increased the price target for Neurocrine Biosciences (NASDAQ:NBIX) to $152 from $137 while sustaining a Buy rating on the stock. The company, currently valued at $12 billion, shows strong potential according to InvestingPro data, with analysts setting targets as high as $192. Verma’s assessment suggests a renewed confidence in the company’s growth prospects, particularly highlighting the potential of their product Ingrezza and the upcoming Crenessity launch.
Verma believes that Neurocrine Biosciences’ first-quarter performance has dispelled concerns held by some investors, potentially lifting a significant weight off the company’s stock value. This confidence is supported by the company’s robust financial health, earning a "GREAT" rating from InvestingPro, with impressive revenue growth of nearly 25% and a strong current ratio of 3.4. The analyst anticipates that the stock will now become more appealing to investors, given these positive developments.
According to Verma, the growth story for Ingrezza, Neurocrine’s leading product, has been reaffirmed, allowing investors to shift their attention to the launch prospects of Crenessity. UBS’s detailed analysis supports a forecast of $2.5 billion in peak sales for Crenessity, which notably exceeds the consensus estimate of $1.5 billion.
The first-quarter update on Ingrezza was viewed by the buy-side as crucial for establishing the stock’s downside risk. However, Verma contends that while there is limited room for upside to Ingrezza estimates on the sell-side, their projections are still 2-4% higher than the sell-side consensus from 2025 to 2028.
With investor concerns regarding Ingrezza now alleviated, Verma expects the investment narrative to shift towards Crenessity over the next two to three quarters. The analyst sees this as an opportunity for even greater upside for Neurocrine Biosciences. For deeper insights into NBIX’s valuation and growth metrics, including 8 additional ProTips and comprehensive financial analysis, check out the full research report available on InvestingPro.
In other recent news, Neurocrine Biosciences reported earnings that exceeded Wall Street’s expectations, with a diluted non-GAAP EPS of $0.70 and revenue of $572.6 million, surpassing the anticipated EPS of $0.54 and revenue of $559.6 million. The company also reaffirmed its 2025 guidance for Ingrezza, projecting sales between $2.5 billion and $2.6 billion, indicating a potential growth of about 10% at the midpoint. Analysts from Stifel maintained a Buy rating on the stock, citing strong performance from Ingrezza and a successful launch of Crenessity, with the latter recording over 400 patient start forms, significantly above expectations. RBC Capital Markets raised their price target to $145, maintaining an Outperform rating, reflecting confidence in the company’s commercial momentum and stable investment outlook.
BMO Capital Markets also adjusted their price target to $115, acknowledging the strong early performance of Crenessity while expressing cautious optimism about the challenges for Ingrezza. Piper Sandler reduced their price target to $154 but retained an Overweight rating, expecting increased prescription growth for Ingrezza and noting the early success of Crenessity. Needham raised their price target to $139 following the earnings report, maintaining a Buy rating and highlighting the continued growth trajectory of Ingrezza due to expanded payer coverage and marketing initiatives. These developments underscore Neurocrine Biosciences’ strong market position and potential for future growth, as reflected in the varied analyst ratings and price target adjustments.
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