Goldman Lifts Royalty Pharma Target to $51, Cites 3%–8% 2026 Growth Outlook
Goldman Sachs raised its price target on Royalty Pharma to $51 from $45 after Q4 results showed portfolio receipts outpacing expectations. 2026 guidance forecasts $3.275–3.425 billion in portfolio receipts (3%–8% growth), $350–360 million interest expense, $60 million in milestone receipts, and operating costs of 5%–6.5% with $3.5 billion in financial capacity.
1. Target Increase and Q4 Performance
On February 12, Goldman Sachs raised its price target on Royalty Pharma to $51 from $45 after Q4 portfolio receipts exceeded street expectations, highlighting robust synthetic royalty performance and commercial momentum.
2. 2026 Financial Guidance
Royalty Pharma guided 2026 portfolio receipts of $3.275–3.425 billion, reflecting 3%–8% year-over-year growth, with operating costs at 5%–6.5% of receipts, interest expense of $350–360 million, milestone receipts of ~$60 million and $3.5 billion in available capital.
3. 2025 Transactions and Shareholder Returns
In 2025, the company completed $4.7 billion in transactions, deployed $2.6 billion, returned $1.7 billion to shareholders via $1.2 billion in buybacks and $500 million in dividends, raised its dividend by 7%, and reduced its share count by about 5%.