Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Goldman Sachs has reiterated its Buy rating and $624.00 price target on Vertex Pharmaceuticals (NASDAQ:VRTX), currently trading at $366.54, highlighting the company’s expanding business beyond its core cystic fibrosis franchise. The stock has recently seen 12 analysts revise their earnings estimates upward, with analyst targets ranging from $330 to $624.
The investment bank views Vertex as having an "established monopolistic franchise" in cystic fibrosis, with estimated sales reaching approximately $14.5 billion by 2030, forming the company’s first business pillar. According to InvestingPro data, the company maintains strong financials with a "GOOD" overall health score and impressive gross profit margins of 56%.Want deeper insights? InvestingPro offers 12 additional exclusive tips and comprehensive analysis for Vertex Pharmaceuticals, available in the Pro Research Report.
Goldman Sachs identifies pain management as Vertex’s second vertical, noting the ongoing acute pain product launch and the company’s strategy of conducting two Phase 3 studies for Journavx in diabetic peripheral neuropathy before expanding to additional indications. The company’s strong financial position, with a current ratio of 2.52 and moderate debt levels, provides solid backing for these expansion efforts.
The firm believes a third pillar is emerging in kidney disease and immunology, including povetacicept for IgA nephropathy and inaxaplin for APOL1-mediated kidney disease, with potential global peak sales of $3.3 billion in IgA nephropathy alone.
Goldman Sachs expects upcoming data from the Phase 2 RUBY-3 study at the American Society of Nephrology meeting in November and results from the Phase 3 interim analysis cohort in the first half of 2026, concluding that Vertex’s pipeline potential is not currently reflected in its share price.
In other recent news, Vertex Pharmaceuticals reported second-quarter 2025 revenue of $2.96 billion, surpassing both Truist Securities’ estimate of $2.93 billion and the consensus estimate of $2.91 billion. Despite this revenue beat, several firms have adjusted their price targets for Vertex. Truist Securities lowered its target to $490, citing the company’s dependence on its cystic fibrosis (CF) treatments. Meanwhile, Canaccord Genuity reduced its price target to $411, maintaining a Hold rating and noting mixed updates in Vertex’s pipeline.
Bernstein SocGen Group, however, raised its price target to $471, despite setbacks in Vertex’s pain program that led to a significant after-hours share price drop. H.C. Wainwright also lowered its target to $478, following the failure of Vertex’s next-generation NaV1.8 inhibitor to meet primary endpoints. BofA Securities adjusted its target to $34, highlighting concerns about Vertex’s fiscal year 2025 outlook amid weaker macroeconomic conditions. These developments reflect a cautious but varied outlook from analysts on Vertex’s future performance.
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