UBS and Citi Are Bullish on Royalty Pharma Plc (RPRX) - Here's Why

Royalty Pharma Plc (NASDAQ:RPRX) is one of the best healthcare stocks under $50 to invest in. On January 30, Royalty Pharma Plc (NASDAQ:RPRX) was upgraded to Buy from Neutral by UBS, with the firm raising the price target on the stock to $49 from $38. The firm told investors that Royalty Pharma Plc (NASDAQ:RPRX) has delivered a series of attractive royalty deals, “meaningfully” bolstering its growth profile. UBS sees a “catalyst-rich” 2026 for the company, with the potential of driving “significant stock upside on upcoming de-risking events.”

It added that Royalty Pharma Plc (NASDAQ:RPRX) has an attractive growth profile on both an absolute and relative basis compared to several large-cap pharma names experiencing material loss of exclusivities.

In addition to UBS, Citi also lifted the price target on Royalty Pharma Plc (NASDAQ:RPRX) to $50 from $48 on January 27, maintaining a Buy rating and adjusting price targets in the biopharma group as part of a fiscal Q4 preview. According to the firm, factors such as “beatable” estimates and reduced policy risk should create a favorable setup for the group in 2026.

Royalty Pharma Plc (NASDAQ:RPRX) funds innovation in the biopharmaceutical industry and buys 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.

While we acknowledge the potential of RPRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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