Morgan Stanley Raises Royalty Pharma (RPRX) Price Target, Maintains Overweight Rating

Royalty Pharma plc (NASDAQ:RPRX) is one of the high-margin pharma stocks to buy now. Royalty Pharma plc (NASDAQ:RPRX) received a vote of confidence from Morgan Stanley this week as analyst Terence Flynn raised the firm’s price target to $54 from $51 while maintaining an Overweight rating. The adjustment reflects a favorable outlook on the company’s cash flow durability and its ability to weather broader industry headwinds.

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

Flynn noted in a client note that large-cap pharmaceutical and biotech names have struggled to gain traction this year, weighed down by macroeconomic pressures and lingering regulatory uncertainty. Challenges such as evolving drug pricing frameworks, international tariff exposure, and ongoing personnel shifts within the FDA have all contributed to investor caution across the healthcare space.

Despite this backdrop, Royalty Pharma continues to distinguish itself through its unique business model, which centers on acquiring royalty streams tied to established and emerging therapies. The company’s portfolio, anchored by revenue from blockbuster drugs such as Tysabri, Imbruvica, and Trelegy, has offered a more stable earnings profile than many of its industry peers.

Flynn’s upward revision suggests Royalty Pharma remains well-positioned in a sector facing ongoing volatility, with defensive qualities that appeal to investors seeking income and resilience in a complex policy and economic environment.

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