Neurocrine’s Growth Potential and Positive Outlook Justify Buy Rating Despite Setbacks

Citi analyst Yigal Nochomovitz has maintained their bullish stance on NBIX stock, giving a Buy rating yesterday.

Yigal Nochomovitz has given his Buy rating due to a combination of factors that highlight Neurocrine’s potential for growth despite recent setbacks. The failure of NBI-770 in a small Phase 2 trial was not unexpected, considering the challenges associated with depression trials and the study’s limited size. However, Nochomovitz emphasizes the broader pipeline of Neurocrine, which includes promising candidates like osavampator and direclidine, as well as several early-stage programs that could drive future value.
Additionally, Nochomovitz remains optimistic about the prospects of Ingrezza, especially in light of anticipated favorable outcomes from CMS negotiations and the potential for a less severe IRA discount for Austedo than previously feared. These elements collectively contribute to a positive outlook for the company’s stock, justifying the Buy rating with an expected share price return of 35.3%.

In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $191.00 price target.