Royalty Pharma’s Dazzling Debut Leads to Tepid Street Views
- ‘Everything to love apart from the valuation,’ Citi said
- Stock slips after lackluster analyst reception on share rally
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Coverage of Royalty Pharma Plc kicked off with a whimper instead of a bang after at least five analysts initiated with hold ratings and only three touted buy recommendations after one of the year’s largest U.S. initial public offerings.
Shares fell as much as 5% Monday, touching the lowest since June 17, after the lukewarm reviews. Citi summed it up for many on Wall Street: “Everything to love apart from the valuation,” analyst Andrew Baum wrote, noting a more than 60% surge for the stock since its June 15 debut. Royalty Pharma, which inks lucrative deals collecting future royalties on sales for drugs still in development, offers investors more than 12% rate of return on its capital investments, Baum said.