RBC has outlined a set of top pharmaceutical stock selections, distinguishing between momentum-driven positions and value-oriented opportunities within the sector. The firm’s list highlights companies it believes are positioned for either near-term catalytic events or longer-term pipeline-driven appreciation.
Eli Lilly
RBC designates Eli Lilly as its leading momentum pick and sets a price target of $1,250. The firm cites the company’s dominant GLP-1 franchise and the potential launch of the oral GLP-1 candidate orforglipron as central to its bullish stance. RBC points to recent clinical data showing that orforglipron produced superior results versus a competitor’s therapy in a Type 2 diabetes trial, reinforcing expectations for the drug’s commercial prospects. In addition, Eli Lilly secured FDA approval of a new multi-dose KwikPen for Zepbound, its weight-loss treatment, a regulatory development that supports the firm’s positive outlook on Lilly’s execution in the weight-loss and diabetes markets.
AbbVie
RBC ranks AbbVie as its top value pick and assigns a $260 price target. The firm highlights resilient growth in the company’s immunology franchises as a key rationale and describes the current share price as an attractive entry point for investors. Recent credit market developments are reflected in AbbVie’s upgrade to an A2 rating from Moody’s, with the rating agency citing strong commercial execution across AbbVie’s core portfolios. AbbVie also announced a $380 million plan to build new manufacturing facilities in Illinois to support programs in neuroscience and obesity, a capital commitment RBC references when assessing the company’s outlook.
Merck
RBC assigns Merck an Outperform rating with a $142 price target, arguing that the stock may not fully reflect the density of its development pipeline. The firm points to strategic moves aimed at enhancing discovery capabilities, including a research and development agreement with the Mayo Clinic to apply artificial intelligence to drug discovery efforts. Merck has also reorganized its Human Health business into two distinct units, a structural change that RBC notes in the context of evaluating the company’s longer-term prospects.
Bristol Myers Squibb
RBC places Bristol Myers Squibb at Sector Perform with a $60 price target, framing the recommendation as neutral given the balance of risks and rewards ahead of several significant binary catalysts scheduled for the second half of the year. The firm describes a cautious stance driven by uncertainty around forthcoming data readouts and regulatory decisions. In support of the company’s scientific progress, Bristol Myers Squibb reported that Reblozyl met both primary and secondary endpoints in a Phase 2 study for treating anemia in adults with alpha-thalassemia. RBC also notes that other market analysts have shifted their outlooks on the company, pointing to an instance in which Piper Sandler raised its price target on Bristol Myers Squibb.
Sector approach and takeaway
RBC’s pharmaceutical coverage deliberately separates momentum opportunities from value plays. The firm’s top momentum choice, Eli Lilly, is characterized by strong commercial execution in the GLP-1 category and actionable near-term product developments. AbbVie’s recommendation is grounded in established immunology franchises and valuation considerations. Merck is highlighted for pipeline assets that RBC believes the market underestimates, while Bristol Myers Squibb’s neutral rating reflects a preference to wait for key clinical and regulatory outcomes before adopting a more directional view.