RHHBY - Royalty Pharma upgraded at Morgan Stanley on valuation

Morgan Stanley has upgraded Royalty Pharma (NASDAQ:RPRX +1.0%) to Overweight from Equal-weight, highlighting its valuation discrepancy relative to the sector. The analyst Terence Flynn notes that the buyer of biopharmaceutical royalties generated $2.6 billion of royalty revenue in 2021 thanks to its portfolio of rights to nearly 50 commercial and development-stage drugs. While its topline growth stands among the highest in its coverage, the stock is trading at ~11x, indicating a discount to the pharma average of ~14x in terms of 2023 earnings, according to the firm. “In our view, the company's growth profile and diversified portfolio deserves at least an in-line multiple and hence our Overweight rating,” the analyst added, raising the price target to $48 from $46 per share to imply a premium of ~21% to the last close. As one of the main concerns for downside risk, Flynn highlighted the company’s reliance on the royalty stream from

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Royalty Pharma upgraded at Morgan Stanley on valuation