Why Neurocrine Biosciences Stock Sank Today

Despite better-than-expected profitability in the fourth quarter, which it reported late last week, Neurocrine Biosciences (NASDAQ: NBIX) hasn't been wowing analysts lately. On Monday, no less than three of them lowered their price targets on the biotech's shares, leaving them with a more than 3% loss in price on the day. That compared unfavorably to the 0.7% rise of the S&P 500 index.

A trio of price target reductions

Triple price target cuts are not the ideal way for a stock to begin a trading week. Yet that was the dynamic with Neurocrine, with prognosticators at H.C. Wainwright, Guggenheim, and UBS (NYSE: UBS) all getting simultaneously less bullish on the company's future.

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Of the trio, the most drastic cutter was UBS's Ashwani Verma, who reduced his level on Neurocrine to $154 per share from his preceding $176.

According to reports, Verma cited uninspiring guidance for the company's leading drug, Ingrezza (a treatment for movement disorder tardive dyskinesia). Management proffered guidance for Ingrezza sales of $2.5 billion to $2.6 billion this year, which wouldn't represent hot growth over the 2024 tally of $2.3 billion.

Both Guggenheim's Yatin Suneja and Wainwright's Andrew Fein were more modest in their Neurocrine price target cuts, with the former shaving $2 off his target to $163 per share and the latter reducing his by $5 to $185. The two analysts also cited projected Ingrezza 2025 sales in their updates, according to reports.

Bullishness is still in the air

Neurocrine is a focused biotech that, while it might not have the bulging portfolio or wide pipeline of some rivals, can clearly and successfully bring medications to market.

Also, while the Ingrezza sales projection isn't what some might have wanted it to be, the take from the in-demand drug should continue to grow. It's telling that all three analysts maintained their buy recommendations on the stock despite their price target trimmings.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Neurocrine Biosciences. The Motley Fool has a disclosure policy.