UBS cuts Neurocrine Biosciences stock price target to $214 on competition
UBS has reduced its price target for Neurocrine Biosciences (NBIX) stock to $214 from $231, while keeping a Buy rating. The lower target follows a 25% drop in the stock since the second quarter earnings report, attributed to safety concerns surrounding Vykat following the Soleno acquisition and increased competition for Crenessity post Vertex's acquisition of Crinetics.
Despite this, UBS sees the stock as a potential defensive investment, trading at an attractive valuation with a P/E ratio of 20.52 and a low PEG ratio of 0.2. The firm's discounted cash flow analysis and RSI suggest the stock may be undervalued. However, recent safety issues with Vykat have raised concerns, with seven patient deaths and over 100 serious adverse events reported.
Despite these challenges, NBIX remains an attractive option for investors seeking growth at a reasonable price.
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