Citi Raises Royalty Pharma's Price Target to $42, Maintaining Buy Rating

Citi has increased its price target for Royalty Pharma (RPRX) to $42, with a Buy rating. The firm expects strong seasonal performance for major biopharmaceutical companies in the second quarter. Analysts predict an average target price of $41.45, with a 16.26% upside from the current price. The company reported a 12% growth in Royalty receipts and announced a new Phase III R&D funding collaboration with Biogen.

Citi has raised its price target for Royalty Pharma (RPRX) to $42, accompanied by a Buy rating. The financial institution attributes this increase to the strong seasonal performance expected for major biopharmaceutical companies in the second quarter. Analysts predict an average target price of $41.45, indicating a 16.26% upside from the current price [2].

The company reported a 12% growth in Royalty receipts, underscoring its robust financial performance. Additionally, Royalty Pharma has announced a new Phase III R&D funding collaboration with Biogen, further enhancing its pipeline and strategic position in the biopharmaceutical sector [3].

Royalty Pharma's dividend remains a key attraction for income-focused investors. The company declared a consistent quarterly dividend of $0.22 per share, with a forward yield of 2.48%. This dividend is payable on September 10, 2025, to shareholders of record by August 15, 2025 [1].

The company's strong balance sheet and strategic initiatives, including the internalization of its management structure and a $2 billion funding arrangement with Revolution Medicines, position Royalty Pharma as a well-capitalized operator. These moves are expected to generate substantial annual cash savings and support future growth [3].

References:
[1] https://www.ainvest.com/news/royalty-pharma-declares-q3-2025-dividend-0-22-class-share-2507/
[2] https://www.gurufocus.com/news/2987531/royalty-pharma-rprx-confirms-consistent-dividend-payout
[3] https://www.ainvest.com/news/royalty-pharma-s-consistent-dividend-and-portfolio-strength-a-strategic-buy-opportunity-for-income-seeking-investors-250710104223f5370a9582f1/