Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

Royalty Pharma plc (RPRX-Q) has garnered favorable attention from analysts, being recognized as a top pick due to its significant role as the largest holder of pharmaceutical-based royalties. The company recently achieved an impressive return on investment, netting $230 million, which has facilitated debt reduction, ongoing share buybacks, and further product development. Valuing the stock, one analysis indicates it trades at 8x earnings, while another suggests 10x earnings, reflecting a solid growth outlook with ROE figures of 24% and 17% respectively. The dividend payout ratios are healthy, with one analyst citing it under 33%, and the stock showcases growth potential with targets that suggest a 25%-28% upside. The stock's appeal is further augmented by its well-structured investment partnerships with major pharmaceutical companies.

Consensus
Positive
Valuation
Undervalued
Similar
BIOX, BIV
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate RPRX as a TOP PICK.  The company is the largest holder of pharma based royalties, providing late stage funding for forward cash royalties.  The company just monetized a recent investment that netted $230 million -- a 76% return on investment -- allowing for a pay down in debt, continuation in share buy backs, and further product development.  The company trades at 8x earnings, 1.8x book and supports a ROE of 24%.  We recommend trailing up the stop (from $22) to $26, looking to achieve $40 -- upside potential of 25%.  Yield 2.6% 

0
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

RPRX partners with pharma companies like Bristol-Myers to help fund development in exchange for collecting royalties.  It pays a good dividend, backed by a payout ratio under 33% of cash flow.  It trades at 10x earnings, under 2x book and supports a 17% ROE.  Its portfolio grew by 15% this year. We recommend setting a stop-loss at $22, looking to achieve $33 -- upside potential of 28%.  Yield 3.2%

(Analysts’ price target is $41.53)
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BUY
Trades cheaply and is now going higher after being stuck for two years. He always said to stick by this.
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WATCH
Invests in biotech and pharma companies in exchange for a royalty. He tracks this one, with its 25B market cap.
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Royalty Pharma plc(RPRX-Q) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Royalty Pharma plc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Royalty Pharma plc(RPRX-Q) Frequently Asked Questions

What is Royalty Pharma plc stock symbol?

Royalty Pharma plc is a American stock, trading under the symbol RPRX-Q on the NASDAQ (RPRX). It is usually referred to as NASDAQ:RPRX or RPRX-Q

Is Royalty Pharma plc a buy or a sell?

In the last year, there was no coverage of Royalty Pharma plc published on Stockchase.

Is Royalty Pharma plc a good investment or a top pick?

Royalty Pharma plc was recommended as a Top Pick by on . Read the latest stock experts ratings for Royalty Pharma plc.

Why is Royalty Pharma plc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Royalty Pharma plc worth watching?

0 stock analysts on Stockchase covered Royalty Pharma plc In the last year. It is a trending stock that is worth watching.

What is Royalty Pharma plc stock price?

On 2025-02-14, Royalty Pharma plc (RPRX-Q) stock closed at a price of $32.36.