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Royalty Pharma plc (RPRX) Earns $51 Target as 2026 Growth Outlook Exceeds Expectations

Royalty Pharma plc (NASDAQ:RPRX) is among the 11 Best Low Priced Growth Stocks to Buy Right Now.

On February 12, Goldman Sachs raised its price target on Royalty Pharma plc (NASDAQ:RPRX) to $51 from $45 and maintained a Buy rating after strong Q4 results. The firm noted that portfolio receipts and 2026 guidance exceeded expectations, implying 3%–8% year-over-year growth in royalty receipts. Goldman emphasized that the company remains positioned for long-term 10%+ top-line growth supported by synthetic royalty performance, ongoing commercial momentum, and favorable conditions in the royalty financing market. The company’s approximately $3.5 billion financial capacity supports continued active capital deployment.

For 2026, Royalty Pharma plc (NASDAQ:RPRX) guided portfolio receipts of $3.275 billion to $3.425 billion, implying royalty receipt growth of roughly 3%–8% based on the current portfolio and excluding future transactions. Milestones and other contractual receipts are expected to decline from $128 million in 2025 to approximately $60 million in 2026. Operating and professional costs are projected at 5%–6.5% of portfolio receipts, down from 8.9% in 2025 and 6.7% in Q4. Interest expense is expected to total approximately $350 million–$360 million, primarily weighted toward Q1 and Q3. Guidance excludes interest income on cash balances and anticipates approximately $85 million of equity performance awards in 2026.

During 2025, Royalty Pharma plc (NASDAQ:RPRX) announced that transaction value totaled $4.7 billion, with $2.6 billion deployed, including $887 million in Q4. The company returned $1.7 billion to shareholders through $1.2 billion in share repurchases and over $500 million in dividends, reducing weighted average share count by approximately 5%. The dividend was increased 7% for 2026, consistent with a mid-single-digit growth target, and management reiterated its dynamic capital allocation strategy, balancing royalty acquisitions, buybacks, and dividends.

Founded in 1996 and headquartered in New York City, Royalty Pharma plc (NASDAQ:RPRX) is the largest buyer of biopharmaceutical royalties globally and partners across the innovation ecosystem from academic institutions to leading pharmaceutical companies.

While we acknowledge the potential of RPRX as an investment, 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 a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Data Storage Stocks to Buy Right Now and 10 Best Cruise Stocks to Buy Right Now.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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