Citigroup maintains Buy rating, raises PT for Royalty Pharma to $42.

Citigroup maintains Buy rating, raises PT for Royalty Pharma to $42.

Citigroup has maintained its "Buy" rating on Royalty Pharma (NASDAQ: RPRX) while raising the price target to $42.00, up from the previous target of $40.00 [3]. The research firm cited several factors contributing to this upward revision, including the company's strong performance and positive outlook for its cystic fibrosis (CF) franchise and Tremfya.

The analyst note highlighted the potential growth for Tremfya, projecting a $7 million increase, and a $5 million improvement in the company's portfolio. Additionally, internalization is driving an improved earnings profile for Royalty Pharma, contributing to the more optimistic outlook.

Royalty Pharma's business model focuses on acquiring biopharmaceutical royalties and funding innovation across the life sciences industry. The company has demonstrated consistent dividend growth for five consecutive years and is expected to continue this trend in 2025.

In other recent news, Royalty Pharma announced a dividend of $0.22 per share for the third quarter of 2025, payable on September 10 to shareholders of record as of August 15 [2]. The company has also completed a significant acquisition involving RP LLC’s equity interests, valued at $200 million in cash, and issued 24,530,266 non-voting Class E ordinary shares as part of the transaction.

Furthermore, Royalty Pharma has entered into a $2 billion funding agreement with Revolution Medicines to support the development of daraxonrasib, a cancer drug in Phase 3 trials. This agreement includes a synthetic royalty of up to $1.25 billion and a $750 million senior secured loan. The company has also strengthened its board by appointing Carole Ho and Elizabeth Weatherman as independent directors, increasing its independent board representation to over 90%.

Institutional investors have also shown interest in Royalty Pharma. Edgestream Partners L.P. acquired a new position in shares of Royalty Pharma PLC in the first quarter, valued at approximately $659,000 [4]. Other institutional investors such as Louisbourg Investments Inc., MassMutual Private Wealth & Trust FSB, Allworth Financial LP, Westpac Banking Corp, and National Bank of Canada FI have also increased their positions in the company.

The positive outlook from Citigroup and other analysts, along with the company's strong financial performance and strategic initiatives, suggests that Royalty Pharma is well-positioned for continued growth. However, investors should consider the risks associated with the biopharmaceutical industry and the company's specific business model.

References:
[1] https://stockinvest.us/stock/RPRX
[2] https://seekingalpha.com/news/4468846-royalty-pharma-declares-0_22-dividend
[3] https://www.investing.com/news/analyst-ratings/citi-raises-royalty-pharma-stock-price-target-to-42-on-cf-and-tremfya-growth-93CH-4145286
[4] https://www.marketbeat.com/instant-alerts/filing-edgestream-partners-lp-invests-659000-in-royalty-pharma-plc-nasdaqrprx-2025-07-20/