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Thursday, Neurocrine (NASDAQ:NBIX) Biosciences Inc. (NASDAQ:NBIX) shares received a positive outlook from Raymond James, as the firm resumed coverage with an Outperform rating and set a price target of $155. The new price objective suggests confidence in the company's prospects, particularly for its product Ingrezza and the potential in the Congenital Adrenal Hyperplasia (CAH) market.
The investment firm's analyst pointed out that the recent decline in Neurocrine's stock price, following mixed results from an M4 receptor agonist study, presents a good opportunity for investors. The analyst emphasized that the company's shares appear undervalued, especially considering the strong performance and growth potential of Ingrezza, a treatment for tardive dyskinesia.
Neurocrine Biosciences has been successful in consistently surpassing expectations and raising financial guidance for Ingrezza, which has bolstered investor confidence. The company's stock has been noted for its resilience and potential for growth, despite the recent pullback.
Looking ahead, the firm anticipates that the approval and market launch of a treatment for CAH, expected by the end of 2024 or early 2025, could significantly propel Neurocrine's stock. The CAH treatment is seen as a key factor that could drive the company's shares upward.
The analyst's statement highlighted the potential for Neurocrine's continued success: "We continue to believe NBIX shares are undervalued for Ingrezza (where NBIX continues to beat & raise) and the CAH opportunity." The firm's outlook indicates a robust future for Neurocrine Biosciences as it navigates the pharmaceutical market with its current and upcoming product offerings.
In other recent news, Neurocrine Biosciences reported significant developments. The company announced sustained improvements in the treatment of Huntington's disease chorea with INGREZZA capsules, according to interim results from the KINECT-HD2 study. This led to over 30% year-over-year growth in INGREZZA sales, pushing their sales guidance for the year to a range of $2.25 billion to $2.3 billion.
However, Neurocrine also discontinued the development of luvadaxistat for schizophrenia-related cognitive impairment after failing to meet the primary endpoint in the ERUDITE Phase 2 clinical study. The company now aims to advance other candidates like NBI-1117568 for schizophrenia and NBI-1065845 for major depressive disorder into Phase 3 clinical development.
In the wake of these developments, several analyst firms have weighed in on Neurocrine's prospects. RBC Capital maintained its Sector Perform rating on Neurocrine shares, while Piper Sandler upgraded the company's stock from Neutral to Overweight, expressing confidence in NBI-1117568.
BMO Capital Markets and Mizuho maintained their Market Perform and Neutral ratings respectively, while H.C. Wainwright reaffirmed its Buy rating for Neurocrine following a dose-finding study for NBI-1117568. These are recent developments in the ongoing story of Neurocrine Biosciences.
InvestingPro Insights
Recent data from InvestingPro provides additional context to Raymond James' optimistic outlook on Neurocrine Biosciences (NASDAQ:NBIX). The company's market capitalization stands at $11.27 billion, reflecting its significant presence in the biopharmaceutical sector. Notably, NBIX has demonstrated strong revenue growth, with a 30.37% increase in the most recent quarter, aligning with the analyst's positive view on Ingrezza's performance.
InvestingPro Tips highlight that NBIX is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.37 for the last twelve months as of Q2 2024. This suggests the stock may be undervalued, supporting Raymond James' assessment. Moreover, the company's net income is expected to grow this year, which could further drive stock performance.
For investors seeking a deeper analysis, InvestingPro offers 11 additional tips on NBIX, providing a comprehensive view of the company's financial health and market position. These insights can be particularly valuable in light of the anticipated CAH treatment launch and its potential impact on Neurocrine's future growth.
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