Royalty Pharma (NASDAQ:RPRX) Given New $78.00 Price Target at Citigroup

Key Points

• Citigroup raised its price target on Royalty Pharma from $70 to $78 and reiterated a Buy rating, implying 15.38% upside from the share price cited in the report.
• Analyst sentiment is broadly positive: eight analysts rate the stock Buy, though the reported average target of $63.29 is below Citigroup’s new target.
• Royalty Pharma raised its 2026 royalty-receipts outlook to $3.55 billion; adjusted third-quarter EPS of $1.21 also exceeded the cited consensus estimate of $1.18.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) had its target price lifted by Citigroup from $70.00 to $78.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the biopharmaceutical company's stock. Citigroup's price objective would indicate a potential upside of 15.38% from the stock's current price.

A number of other equities research analysts also recently issued reports on the company. Morgan Stanley upped their price objective on Royalty Pharma from $65.00 to $67.00 and gave the company an "overweight" rating in a research report on Wednesday, October 7th. Bank of America reiterated a "buy" rating on shares of Royalty Pharma in a report on Wednesday, August 5th. Wall Street Zen downgraded Royalty Pharma from a "strong-buy" rating to a "buy" rating in a research report on Saturday, September 26th. TD Cowen boosted their target price on Royalty Pharma from $65.00 to $68.00 and gave the company a "buy" rating in a research report on Tuesday, September 8th. Finally, Weiss Ratings upgraded Royalty Pharma from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, September 14th. Eight research analysts have rated the stock with a Buy rating. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $63.29.

Royalty Pharma Price Performance

Shares of NASDAQ:RPRX traded up $0.04 on Thursday, reaching $67.60. The company's stock had a trading volume of 4,896,620 shares, compared to its average volume of 3,424,217. The company has a 50-day simple moving average of $60.59 and a 200 day simple moving average of $53.53. Royalty Pharma has a 52-week low of $37.31 and a 52-week high of $69.77. The company has a debt-to-equity ratio of 0.88, a quick ratio of 2.80 and a current ratio of 2.80. The company has a market cap of $38.87 billion, a P/E ratio of 46.62, a PEG ratio of 1.82 and a beta of 0.37.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last announced its earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.27 by $0.05. The firm had revenue of $674.14 million for the quarter, compared to analysts' expectations of $758.93 million. Royalty Pharma had a net margin of 32.14% and a return on equity of 30.01%. As a group, equities research analysts anticipate that Royalty Pharma will post 5.29 EPS for the current fiscal year.

Insider Activity at Royalty Pharma

In other news, EVP Marshall Urist sold 4,126 shares of the stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $57.10, for a total value of $235,594.60. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher Hite sold 100,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $58.53, for a total value of $5,853,000.00. Following the sale, the executive vice president directly owned 270,401 shares of the company's stock, valued at $15,826,570.53. This represents a 27.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 208,252 shares of company stock valued at $12,324,407 in the last 90 days. Company insiders own 18.84% of the company's stock.

Hedge Funds Weigh In On Royalty Pharma

Hedge funds have recently bought and sold shares of the business. Bank of America Corp DE lifted its stake in shares of Royalty Pharma by 29.0% during the 1st quarter. Bank of America Corp DE now owns 3,495,846 shares of the biopharmaceutical company's stock worth $167,696,000 after purchasing an additional 786,921 shares during the last quarter. Amundi grew its stake in Royalty Pharma by 15.3% in the first quarter. Amundi now owns 3,088,773 shares of the biopharmaceutical company's stock valued at $148,168,000 after purchasing an additional 409,394 shares during the last quarter. Dorsey Asset Management LLC grew its stake in Royalty Pharma by 0.8% in the first quarter. Dorsey Asset Management LLC now owns 2,276,570 shares of the biopharmaceutical company's stock valued at $109,207,000 after purchasing an additional 17,101 shares during the last quarter. Hsbc Holdings PLC grew its stake in Royalty Pharma by 2,562.2% in the first quarter. Hsbc Holdings PLC now owns 1,544,018 shares of the biopharmaceutical company's stock valued at $74,000,000 after purchasing an additional 1,486,020 shares during the last quarter. Finally, Robeco Institutional Asset Management B.V. raised its holdings in Royalty Pharma by 28.2% in the third quarter. Robeco Institutional Asset Management B.V. now owns 1,168,427 shares of the biopharmaceutical company's stock worth $68,189,000 after purchasing an additional 256,841 shares in the last quarter. Institutional investors own 54.35% of the company's stock.

Royalty Pharma News Summary

Here are the key news stories impacting Royalty Pharma this week:

• Positive Sentiment: Royalty Pharma raised its 2026 royalty-receipts outlook to $3.55 billion, a key positive that signals stronger expected cash flows from its royalty portfolio. Royalty Pharma Q3 Results Show Growth; Raises FY26 Receipts Outlook To $3.55 Bln
• Positive Sentiment: On an adjusted basis, Q3 earnings were reported at $1.21 per share, above the Zacks consensus estimate of $1.18 and up from $1.17 a year earlier. This suggests underlying earnings growth and may support investor confidence. Royalty Pharma Q3 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: Q3 revenue was reported at about $690 million, but estimates cited by outlets differ: some reported a beat, while another comparison showed revenue below expectations. The conflicting benchmarks make the revenue takeaway less clear. Royalty Pharma reports third quarter 2026 results
• Negative Sentiment: A separate report put quarterly EPS at $0.32, well below its $1.18 consensus estimate. This likely reflects a different, reported accounting measure than the adjusted $1.21 figure, but could still concern investors focused on GAAP results. Royalty Pharma quarterly earnings results

About Royalty Pharma

Royalty Pharma plc NASDAQ: RPRX is a biopharmaceutical royalty investment company that provides funding to life sciences companies, academic institutions, and other organizations in exchange for rights to future payments tied to approved or development-stage medicines. Its business model gives innovators access to capital while allowing Royalty Pharma to participate in the long-term commercial success of pharmaceutical products.

The company acquires and manages royalty interests across a broad range of therapeutic areas, including immunology, oncology, neuroscience, rare diseases, and infectious diseases.

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