Analyst Jason Gerberry from Bank of America Securities maintained a Buy rating on Royalty Pharma (RPRX – Research Report) and keeping the price target at $42.00.
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Jason Gerberry has given his Buy rating due to a combination of factors that highlight the potential upside for Royalty Pharma. The strategic royalty financing deal with Revolution Medicines allows Royalty Pharma to benefit from the success of daraxonrasib, an oncology asset with promising prospects. The deal structure includes staged capital infusions and increasing royalty rates, which align with the anticipated growth in sales, particularly as pivotal data for daraxonrasib in pancreatic cancer is expected in 2026.
Furthermore, Gerberry notes that the partnership with Revolution Medicines is part of Royalty Pharma’s broader strategy of prudent capital deployment in high-risk, high-reward drug pipelines. The favorable market dynamics, including attractive pricing for small molecule cancer drugs and the high unmet need in pancreatic cancer, add to the positive outlook. The optionality in the deal terms, which includes future indications and potential approval of second-generation assets, represents an attractive return on investment for Royalty Pharma, justifying the Buy rating.
In another report released on June 17, Citi also maintained a Buy rating on the stock with a $40.00 price target.
RPRX’s price has also changed dramatically for the past six months – from $25.230 to $36.140, which is a 43.24% increase.