Vertex stock price target lowered to $34 from $42 at BofA Securities

Published 08/08/2025, 11:30
Vertex stock price target lowered to $34 from $42 at BofA Securities

Investing.com - BofA Securities lowered its price target on Vertex (NASDAQ:VRTX) to $34.00 from $42.00 on Friday, while maintaining a Neutral rating on the tax software provider. The stock, currently trading at $375.63, has experienced significant pressure, declining nearly 19% over the past week according to InvestingPro data.

The price target reduction follows Vertex’s weaker fiscal year 2025 outlook, with BofA noting that Vertex is among few companies citing weaker macroeconomic conditions, suggesting potential underlying issues beyond general market trends. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with 12 analysts recently revising their earnings expectations upward.

BofA analysts pointed to limitations in the sales tax category as a constraint on growth, stating this quarter made those limitations more evident in the company’s performance.

Despite these concerns, BofA acknowledged Vertex’s leadership position in the enterprise segment, where the company continues to benefit from gradual cloud migration and increasing e-invoicing adoption cycles.

The new $34 price target represents 7.0x BofA’s calendar 2026 revenue estimate, down from the previous 8.4x multiple, though the firm maintained its growth-adjusted multiple at 0.6x and considers the stock fairly valued at its current 52x trading level.

In other recent news, Vertex Pharmaceuticals reported second-quarter 2025 total revenue of $2.96 billion, surpassing both Truist Securities’ estimate of $2.93 billion and the Street consensus of $2.91 billion. Despite this revenue beat, several analysts adjusted their price targets for Vertex. Canaccord Genuity lowered its price target to $411, citing mixed pipeline updates and maintaining a Hold rating. Bernstein SocGen Group, on the other hand, raised its price target to $471, despite setbacks in Vertex’s pain pipeline, while maintaining a Market Perform rating.

Truist Securities also adjusted its outlook, lowering the price target to $490 due to Vertex’s continued dependence on its cystic fibrosis (CF) treatments, while still recommending a Buy. H.C. Wainwright reduced its target to $478 following setbacks in the company’s pain program, noting the failure of the NaV1.8 inhibitor to meet primary endpoint significance. Stifel followed suit, lowering its price target to $455 after Vertex decided not to pursue a broad painful neuropathic pain label in Phase 3 trials for its LSR program. These developments provide investors with a mixed perspective on Vertex’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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