Regeneron Pharmaceuticals (REGN) could see its core franchises, Eylea and Dupixent, impacted by new competitors this year, but the company's valuation remains reasonably balanced, RBC Capital said in a Tuesday note.

The brokerage noted that the company's marketed products and cash support an estimated $625 per share floor, though upcoming competitor developments in 2026 could affect its revenue growth.

According to the report, the key potential challenges include upcoming phase III data for OCUL and EYPT TKIs in wAMD, Merck's Restoret study in DME, the start of OLN324 phase III trials, and several US aflibercept biosimilar launches later this year.

Regeneron's market share is supported by Eylea's safety record, patient loyalty, and high-dose adoption, along with Dupixent's strong presence and expansion into new indications, the report said.

The firm expects Eylea sales to reach $3.8 billion in 2026 before leveling off around $3 billion in later years, and projects approximately 9% compound annual growth in bottom-line growth through 2032.

RBC maintained its sector perform rating on the stock with a price target of $745.

Shares of Regeneron Pharmaceuticals were up 1% in recent trading.

Price: 770.46, Change: +7.81, Percent Change: +1.02