Regeneron Pharmaceuticals' (REGN) long-term prospects seem promising but there is still a lack of clear near-term visibility on the next major growth drivers beyond Dupixent and Eylea, RBC said in a note Tuesday.

The analysts said they visited Regeneron's headquarters, where the overall takeaway was that the company continues to generate a high volume of ideas supported by a strong research and development engine, which should sustain pipeline productivity over time.

"Still, we believe it may take some additional de-risking and a more consistent narrative around the portfolio to provide clearer visibility on long-term successor revenue drivers to Dupi and Eylea," and to support additional upside following the recent share price rebound, they added.

The analysts said they see "underappreciated" medium-term growth from Dupixent, the pipeline, and the Sanofi (SNY) repayment. However, near-term outperformance likely requires a clear multi-billion-dollar pipeline win, a reacceleration in Dupixent growth, or greater clarity on Dupixent's life cycle, none of which appear imminent, they said.

As a result, the stock may continue to trade at a discount in the near term amid Eylea-related headwinds and uncertainty around Dupixent's loss of exclusivity, they added.

RBC has a sector perform rating and a $745 price target on Regeneron Pharmaceuticals.

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