Vertex stock gains as Citizens reiterates Market Outperform rating

Investing.com - Vertex (NASDAQ:VRTX), a $109 billion market cap biotech company with a "GREAT" financial health score according to InvestingPro, saw its stock gain after Citizens reiterated its Market Outperform rating and $50.00 price target despite the announcement of a CEO change.

The company announced Tuesday that CEO David DeStefano will step down from his position on November 10, to be succeeded by Christopher Young, former EVP of Business Development, Strategy and Ventures at Microsoft and former CEO of McAfee.

Vertex also pre-announced its third-quarter results, with expected revenue of $192 million slightly exceeding consensus estimates of $191.7 million, while adjusted EBITDA is projected at $43 million, significantly above the consensus of $39.7 million.

Citizens maintained its positive outlook on Vertex despite the stock having fallen 50% year-to-date, compared to a 14% increase for the Russell 3000 during the same period.

The firm’s maintained Market Outperform rating suggests confidence in Vertex’s business fundamentals despite the leadership transition and stock performance challenges.

In other recent news, Vertex Pharmaceuticals has received Breakthrough Therapy Designation from the U.S. Food and Drug Administration for its kidney drug, povetacicept, aimed at treating IgA nephropathy. This designation, based on data from the Phase 2 RUBY-3 clinical trial, is intended to expedite the drug’s development. Additionally, Vertex’s third-quarter financial results are anticipated to align with expectations, with Cantor Fitzgerald maintaining an Overweight rating and a $485 price target, focusing on updates in Vertex’s renal franchise. RBC Capital raised its price target for Vertex to $423, projecting that sales of the drug Trikafta will surpass consensus estimates despite a recent downward trend in prescriptions. Furthermore, Leerink Partners upgraded Vertex to Outperform, citing strong prospects for its pain medication Journavx and adjusting its price target to $456. On the international front, Italy’s Medicines Agency has approved reimbursement for Vertex’s gene editing therapy CASGEVY, which treats transfusion-dependent beta thalassemia and severe sickle cell disease. These developments reflect a mix of regulatory advancements and positive analyst outlooks for Vertex Pharmaceuticals.

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