RBC Capital: 'We see upside in multiple scenarios, and so would remain buyers'

RBC Capital analyst Brian Abrahams reiterated an Outperform rating and $177.00 price target on Neurocrine Bio. (NASDAQ: NBIX).

The analyst commented: "Could NBIX Be A Takeout Target? Post-4Q EPS, NBIX has been under pressure, likely driven by shorter-term dynamics – Crenessity launch metrics, in-line Ingrezza guidance, a step-up in spend – and we see an increasing disconnect vs. fundamental fair value of their low-risk commercial portfolio. While we do not believe NBIX has been traditionally viewed as a potential takeout target (and the company continues to position itself for LT diversification as a standalone), we believe if this gap remains, NBIX could be attractive to a potential acquirer – with large biopharms facing significant medium-term revenue cliff from patent expiries, and our analysis indicates NBIX has the scarcity value of being one of only several biotech companies whose ~$3B in existing commercial revenue is expected to grow by more than 50% by 2030 and be durable well into the next decade. We see upside in multiple scenarios, and so would remain buyers."

For an analyst ratings summary and ratings history on Neurocrine Bio. click here. For more ratings news on Neurocrine Bio. click here.

Shares of Neurocrine Bio. closed at $128.38 yesterday.

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