In a report released yesterday, Terence Flynn from Morgan Stanley maintained a Buy rating on Royalty Pharma, with a price target of $55.00.
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Terence Flynn has given his Buy rating due to a combination of factors, primarily focusing on Royalty Pharma’s strategic acquisition of a royalty interest in Amgen’s Imdelltra. This acquisition involves a substantial upfront payment and an option for additional investment, positioning Royalty Pharma to benefit from a 7% royalty on worldwide net sales of Imdelltra, a promising treatment for extensive-stage small cell lung cancer.
The potential for significant revenue growth is evident as Imdelltra has already shown strong sales performance, and future projections indicate substantial market potential. Additionally, ongoing Phase 3 studies for Imdelltra in combination with other treatments could further enhance its market position. These strategic moves and the expected longevity of the royalty stream through 2038-2041 underpin Flynn’s optimistic outlook on Royalty Pharma’s stock.
Flynn covers the Healthcare sector, focusing on stocks such as BioNTech SE, Gilead Sciences, and Amgen. According to TipRanks, Flynn has an average return of 3.4% and a 54.25% success rate on recommended stocks.
In another report released on August 19, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $40.00 price target.