15 Best Defensive Stocks Amid Market Volatility

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12. Royalty Pharma plc (NASDAQ:RPRX)

Beta: 0.47

Number of Hedge Fund Holders: 39

Royalty Pharma plc (NASDAQ:RPRX) has a slightly different model as compared to pharma peers. The company buys biopharmaceutical royalties, offering funding to life sciences companies and research institutions in exchange for future royalty payments. Its portfolio includes interests in blockbuster drugs across various therapeutic areas, including oncology, rare diseases, and neurology.

In late January, BofA Securities analyst Jason Gerberry reaffirmed a Buy rating on Royalty Pharma plc (NASDAQ:RPRX) and raised the price target from $38 to $41. He cited the internalization of RP Management LLC (RP) and upcoming financial catalysts as key drivers. RP internalization simplifies financial reporting, aligns management with shareholders, and boosts portfolio cash flow, despite potential equity dilution. The analyst also expected major growth opportunities, including the launch of Alyftrek, which could convert many Trikafta therapy patients, and key drug trial results from Novartis and Bristol, potentially accelerating the company’s expansion. In mid-February, Citi analyst Geoff Meacham also reiterated a Buy rating on the shares with a price target of $40, implying a 19% upside.

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