BofA lifts Royalty Pharma price target to $63 on Q2 beat

BofA Securities raised Royalty Pharma's price target to $63 from $62, reaffirming a Buy rating after second-quarter results beat expectations and sent shares surging over 27%. Q2 royalty receipts reached $768 million, up 14% year-over-year, with portfolio receipts of $773 million, up 6%. Strong performances from Tremfya, Voranigo, Imdelltra, and Evrysdi fueled the beat. The company raised its full-year 2026 guidance for a second straight quarter to $3.4–3.5 billion. Shares traded at $57.93, near the 52-week high of $60.44, with a 50% year-to-date gain. Despite biosimilar headwinds and expiring exclusivity periods, BofA raised 2026-and-beyond royalty estimates roughly 3%.