Royalty Pharma Due for Wall Street Appraisal After 70% Surge
(Bloomberg) -- Royalty Pharma Plc could get another boost on Monday when analysts weigh in for the first time following a 70% rally since last month’s trading debut.
Underwriters of the hedge-fund darling’s initial public offering will be eligible to start coverage next week, including JPMorgan, Morgan Stanley, Bank of America, Goldman Sachs, Citigroup and UBS. Banks that help bring a company’s listing to market often have favorable reviews.
A string of buy recommendations and price targets above the current record might be enough to reignite a stalled rally after the stock closed at a peak of $52.11 on June 25, though there’s always a chance the Street views the valuation as too high.
Royalty Pharma makes its money from licensing deals with drugmakers in need of cash while a new medicine is still under development. The New York-based company gets a steady stream of royalties from a number of blockbuster drugs like Vertex Pharmaceuticals Inc.’s cystic fibrosis drug Trikafta and Gilead Sciences Inc.’s HIV medicine Truvada.
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