Morgan Stanley Maintains a Buy Rating on Royalty Pharma Plc (RPRX) With a $55 PT

Royalty Pharma Plc (NASDAQ:RPRX) is one of the top most undervalued biotech stocks to buy now. In a report released on August 7, Terence Flynn from Morgan Stanley maintained a Buy rating on Royalty Pharma Plc (NASDAQ:RPRX), setting a price target of $55.00.

Is Royalty Pharma plc (RPRX) The Most Profitable Biotech Stock To Buy Right Now?

A scientist in a laboratory looking through a microscope, surrounded by petri dishes and beakers while researching new biopharmaceutical advances.

The rating update came after Royalty Pharma Plc (NASDAQ:RPRX) reported its fiscal Q2 2025 results on August 6, with portfolio receipts for the quarter growing 20% to $727 million. Royalty receipts underwent an 11% growth, while net cash provided by operating activities reached $364 million.

Royalty Pharma Plc (NASDAQ:RPRX) also raised its full-year 2025 guidance, and now expects portfolio receipts in the $3.05 billion to $3.15 billion range.

Royalty Pharma Plc (NASDAQ:RPRX) is a funder of innovation in the biopharmaceutical industry and a buyer of biopharmaceutical royalties. It collaborates with innovators from research hospitals, non-profits, and academic institutions through small and mid-cap biotech companies to global pharma companies.

The company funds innovation in the industry both directly, by partnering with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly, by acquiring existing royalties from the original innovators.

Royalty Pharma Plc’s (NASDAQ:RPRX) portfolio includes royalties in over 35 commercial products, including Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Novartis’ Promacta, Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and others.

While we acknowledge the potential of RPRX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RPRX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.