Neurocrine Biosciences Stock Plunges as Analysts Cut Price Targets

Neurocrine Biosciences (NBIX) stock price took a significant hit on Monday, February 11, 2025, dropping by more than 3% compared to the S&P 500 index's 0.7% rise. This decline can be attributed to a trio of price target reductions by prominent analysts, who cited uninspiring guidance for the company's leading drug, Ingrezza, as the primary reason for their pessimism.

Analysts' Price Target Reductions

Three major analysts—H.C. Wainwright, Guggenheim, and UBS—reduced their price targets for Neurocrine Biosciences' shares. UBS analyst Ashwani Verma led the pack, slashing his target from $176 to $154. Verma pointed to the company's guidance for Ingrezza sales of $2.5 billion to $2.6 billion in 2025, which he deemed uninspiring. Guggenheim's Yatin Suneja and H.C. Wainwright's Andrew Fein also reduced their targets, by $2 and $5, respectively, citing similar concerns about Ingrezza's projected sales.

Ingrezza Sales Guidance and Market Reaction

Neurocrine Biosciences' guidance for Ingrezza sales in 2025 suggests a growth rate of approximately 10% to 12% compared to the 2024 sales of $2.3 billion. While this growth rate is lower than the previous year's growth rate of 26%, it is still important for Neurocrine Biosciences to maintain steady growth in Ingrezza sales to support its overall financial performance. However, the slower growth rate and the analysts' price target reductions have led investors to question the company's prospects.

Investor Sentiment and Stock Performance

The analysts' price target reductions have negatively impacted investor sentiment and Neurocrine Biosciences' stock performance. Despite maintaining their buy recommendations on the stock, the analysts' reduced price targets and concerns about Ingrezza's sales growth have led investors to question the company's growth potential and overall prospects. This has resulted in a decline in Neurocrine Biosciences' stock price, which contrasts unfavorably with the broader market's performance.

In conclusion, Neurocrine Biosciences' stock price sank today due to a trio of price target reductions by prominent analysts, who cited uninspiring guidance for the company's leading drug, Ingrezza. The company's guidance for Ingrezza sales in 2025 suggests a slower growth rate than previously expected, which has led investors to question the company's growth potential and overall prospects. Despite maintaining their buy recommendations on the stock, the analysts' reduced price targets and concerns about Ingrezza's sales growth have negatively impacted investor sentiment and Neurocrine Biosciences' stock performance.