BofA: Investors pour into bonds, pull back from crypto
Monday, Piper Sandler made a slight adjustment to the price target of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), bringing it down to $533 from the previous target of $535, while maintaining an Overweight rating on the stock. According to InvestingPro data, analyst targets for Vertex range from $325 to $602, with the stock currently trading at $439.62. Based on InvestingPro's Fair Value analysis, the stock appears slightly overvalued at current levels. The adjustment comes as Piper Sandler's analyst, Christopher Raymond (NSE:RYMD), recalibrates expectations for the company's Q4 2024 revenue, particularly for the Casgevy product.
Raymond pointed out that Vertex did not pre-release Q4 2024 revenue nor provide fiscal year 2025 guidance. However, based on the company's update that over 50 sickle cell disease (SCD) and thalassemia patients have undergone cell collection, the analyst has revised the revenue estimate for Casgevy down to $20 million to $39 million. The company's overall revenue growth remains solid at 10.06%, with total revenue reaching $10.6 billion in the last twelve months. InvestingPro subscribers can access detailed revenue forecasts and 8 additional key investment tips for Vertex. This reflects a more cautious outlook on the product's initial market uptake.
In addition to the Casgevy forecast, adjustments were also made to the fiscal year 2025 revenue estimates for Orkambi and Symdeko, which are part of the company's cystic fibrosis (CF) franchise. The new projections are now more aligned with consensus estimates. Nevertheless, Raymond remains confident in the projected revenue for Trikafta, another CF treatment, which is expected to outperform consensus with an estimate of $10,312 million versus the consensus of $10,112 million.
The analyst expressed continued optimism for Vertex's CF franchise and its robust pipeline, including the dual BAFF/APRIL inhibitor povetacicept. The anticipation for the potential launch of suzetrigine, also known as VX-548, for moderate-to-severe acute pain is also a factor contributing to the positive outlook. Suzetrigine has a Prescription Drug User Fee Act (PDUFA) date set for January 30, 2025.
The revised price target of $533 is derived by applying a 28x multiple to the estimated 2026 non-GAAP earnings per share (EPS), which is then discounted back at 15% to early 2026. This slight decrease in the price target reflects the updated earnings multiple from the previous year to 2026. InvestingPro's comprehensive analysis shows Vertex maintains a strong financial health score of 2.86 (GOOD), with liquid assets exceeding short-term obligations and a moderate debt level. Access the full Pro Research Report for deeper insights into Vertex's valuation metrics and growth potential.
In other recent news, Vertex Pharmaceuticals has seen significant developments. The company's non-opioid pain medication, suzetrigine, despite showing promise in Phase 2 trials, failed to outperform the placebo. This led to a range of reactions among analysts, with BMO Capital Markets projecting suzetrigine revenues to reach $145 million by 2025, surpassing the consensus estimate. Cantor Fitzgerald maintains an Overweight rating for Vertex, indicating confidence in the company's pipeline.
On the regulatory front, Vertex received FDA approval for Alyftrek, a treatment for cystic fibrosis, and expanded approval for the cystic fibrosis drug Trikafta. However, the FDA also updated Trikafta's safety information, warning about potential risks of liver injury and failure.
In terms of financial projections, JPMorgan anticipates revenue growth for Vertex in the coming years, with projected revenues of $11.5 billion, $12.5 billion, and $13.7 billion for the fiscal years 2025, 2026, and 2027, respectively. Meanwhile, RBC Capital Markets adjusted its price target for Vertex, slightly increasing it to $401 while maintaining a Sector Perform rating. These are the recent developments in the journey of Vertex Pharmaceuticals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.