The Goldman Sachs Group Initiates Coverage on Royalty Pharma (NASDAQ:RPRX)

Key Points

• Goldman Sachs upgraded Royalty Pharma to a "strong-buy" rating, signaling positive sentiment among investors.
• The stock has seen a price target increase from analysts, with Morgan Stanley raising their target to $54.00, highlighting growing confidence in the company's future performance.
• Royalty Pharma's recent quarterly report showed earnings per share of $1.14, above expectations, despite lower than anticipated revenue of $578.67 million for the quarter.

Stock analysts at The Goldman Sachs Group initiated coverage on shares of Royalty Pharma (NASDAQ:RPRX - Get Free Report) in a research report issued on Tuesday, Marketbeat Ratings reports. The firm set a "buy" rating on the biopharmaceutical company's stock.

Other equities research analysts also recently issued reports about the stock. Wall Street Zen downgraded shares of Royalty Pharma from a "buy" rating to a "hold" rating in a research note on Saturday, September 13th. Citigroup increased their price objective on shares of Royalty Pharma from $40.00 to $42.00 and gave the stock a "buy" rating in a research note on Tuesday, July 22nd. Finally, Morgan Stanley increased their price objective on shares of Royalty Pharma from $51.00 to $54.00 and gave the stock an "overweight" rating in a research note on Thursday, July 10th. Two research analysts have rated the stock with a Strong Buy rating and two have given a Buy rating to the stock. According to data from MarketBeat.com, Royalty Pharma has a consensus rating of "Strong Buy" and an average price target of $46.00.

Royalty Pharma Trading Up 2.9%

RPRX stock opened at $36.32 on Tuesday. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.26 and a current ratio of 1.26. The company's 50-day simple moving average is $36.29 and its 200 day simple moving average is $34.50. Royalty Pharma has a 52 week low of $24.05 and a 52 week high of $38.00. The company has a market capitalization of $21.18 billion, a PE ratio of 20.99, a price-to-earnings-growth ratio of 2.20 and a beta of 0.60.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The biopharmaceutical company reported $1.14 EPS for the quarter, beating the consensus estimate of $1.10 by $0.04. Royalty Pharma had a net margin of 44.23% and a return on equity of 25.54%. The business had revenue of $578.67 million for the quarter, compared to the consensus estimate of $750.06 million. As a group, sell-side analysts anticipate that Royalty Pharma will post 4.49 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RPRX. Norges Bank bought a new position in Royalty Pharma in the 2nd quarter valued at approximately $181,388,000. Victory Capital Management Inc. raised its holdings in Royalty Pharma by 270.4% in the 1st quarter. Victory Capital Management Inc. now owns 3,623,134 shares of the biopharmaceutical company's stock valued at $112,788,000 after buying an additional 2,644,923 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in Royalty Pharma by 118.7% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 2,976,480 shares of the biopharmaceutical company's stock valued at $107,243,000 after buying an additional 1,615,706 shares during the last quarter. Amundi raised its holdings in Royalty Pharma by 126.1% in the 2nd quarter. Amundi now owns 2,797,471 shares of the biopharmaceutical company's stock valued at $101,240,000 after buying an additional 1,560,093 shares during the last quarter. Finally, Jupiter Asset Management Ltd. raised its holdings in Royalty Pharma by 126.5% in the 2nd quarter. Jupiter Asset Management Ltd. now owns 2,470,706 shares of the biopharmaceutical company's stock valued at $89,020,000 after buying an additional 1,380,115 shares during the last quarter. Institutional investors own 54.35% of the company's stock.

About Royalty Pharma

Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry in the United States. It is also involved in the identification, evaluation, and acquisition of royalties on various biopharmaceutical therapies. In addition, the company collaborates with innovators from academic institutions, research hospitals and not-for-profits, small and mid-cap biotechnology companies, and pharmaceutical companies.