Hold Rating on Neurocrine Due to Below-Expectations Financial Performance and Conservative Sales Guidance

Mizuho Securities analyst Uy Ear has maintained their neutral stance on NBIX stock, giving a Hold rating today.

Uy Ear’s rating is based on several factors concerning Neurocrine’s recent financial performance and future projections. The company’s fourth-quarter results for 2024 were slightly below expectations, with total revenue of $627.7 million, falling short of the $630 million consensus. Although Ingrezza’s sales were in line with expectations at $615 million, they did not exceed them, which might have disappointed investors who anticipated a modest beat. Additionally, the company reported Non-GAAP EPS of $1.69, which was below the anticipated $1.99 due to higher expenditures in R&D and SG&A.
Another reason for the Hold rating stems from the company’s cautious sales guidance for Ingrezza in 2025, which is projected to be between $2.5 billion and $2.6 billion, below the midpoint consensus of $2.62 billion. This conservative outlook may suggest a potentially slower growth trajectory. Furthermore, Neurocrine’s increased R&D spending indicates a significant investment in developing their pipeline, which, while promising, also raises concerns about immediate profitability. These combined factors contribute to the decision to maintain a Hold rating on the stock.

NBIX’s price has also changed slightly for the past six months – from $145.630 to $150.510, which is a 3.35% increase.