RBC Capital affirmed its Outperform rating on Neurocrine Biosciences Inc. (NASDAQ: NBIX) and kept a $177.00 price target on the shares, reiterating confidence in the company's commercial portfolio despite near-term headwinds.
The firm noted that market sentiment has been pressured following Neurocrine's fourth-quarter 2025 report, where management commentary around the initial launch metrics for Crenessity, in-line guidance for Ingrezza, and an uptick in operating expenses contributed to investor caution. RBC highlighted a disconnect between the company's present market valuation and what it views as the fair value of Neurocrine's existing commercial assets.
Valuation metrics cited in the analysis show the stock trading at a price-to-earnings ratio of 27.45 and a price/earnings-to-growth ratio of 0.64, the latter of which the firm interprets as indicating that shares may be inexpensive relative to near-term earnings growth expectations.
Independent data referenced by RBC's note indicates Neurocrine has strong financials: an InvestingPro analysis scores the company as "GREAT" on financial health, and a Pro Research Report exists for investors seeking deeper, paid research across NBIX and more than 1,400 other U.S. equities.
On the strategic front, RBC suggested Neurocrine could be an acquisition candidate as larger biopharmaceutical companies confront looming revenue cliffs tied to patent expirations. The bank's analysis identifies Neurocrine as among a small group of biotechnology firms with roughly $3 billion in current commercial revenue and projected growth of more than 50% by 2030.
Neurocrine recorded revenue of $2.86 billion over the last twelve months, representing year-over-year growth of 21%, a level RBC believes supports durability of revenue into the next decade whether the company remains independent or becomes a target.
RBC said it sees upside across multiple scenarios and stated it would remain buyers of the stock at current levels, reflecting the firm's view that the market has not fully priced in the company's commercial trajectory.
Fourth-quarter 2025 financials and peer responses
In the company's most recent quarterly release, Neurocrine reported adjusted earnings per share of $1.88, narrowly exceeding the consensus forecast of $1.86. Revenue for the quarter came in at $805.5 million, slightly above the expected $802.45 million. Ingrezza product sales totaled $658 million for the quarter, a hair below the FactSet consensus of $662 million.
Following the results, several equity research shops issued updates. Canaccord Genuity maintained a Buy rating with a $164.00 price target. H.C. Wainwright also kept a Buy stance but trimmed its price target to $192.00 from $198.00, citing robust momentum and what it characterized as a successful launch year for Crenessity. Truist Securities reduced its price target to $140 from $169, flagging higher-than-expected operating expenses as the primary rationale for the lower valuation.
What this means for investors
The picture that emerges is mixed: the company is delivering revenue growth and modest beats on the headline quarterly numbers, while investor concern has centered on early launch performance for Crenessity and a step-up in spending. RBC's analysis leans toward optimism about the longer-term commercial trajectory and potential strategic interest from larger industry players, while other analysts have responded with divergent price targets based on differing assessments of expenses and launch momentum.
Investors seeking deeper analysis can consult the available Pro Research Report for a more granular review of NBIX and comparable U.S. equities.