Vertex stock price target lowered to $411 by Canaccord on mixed pipeline updates

Published 06/08/2025, 12:42
Vertex stock price target lowered to $411 by Canaccord on mixed pipeline updates

Investing.com - Canaccord Genuity lowered its price target on Vertex Pharmaceuticals (NASDAQ:VRTX) to $411.00 from $424.00 on Wednesday, while maintaining a Hold rating following the company’s second-quarter earnings report. The stock, which has declined over 20% in the past week and is trading near its 52-week low, currently has mixed signals from analysts with targets ranging from $330 to $624. According to InvestingPro data, 12 analysts have recently revised their earnings expectations upward for the upcoming period.

The pharmaceutical company delivered a slight revenue beat in its quarterly results but maintained its previous guidance. With revenue growth of 10.5% over the last twelve months to $11.4 billion and a healthy gross profit margin of 52.3%, the company maintains its position as a prominent player in the biotechnology industry. Canaccord noted the commercial side of the report was "uneventful" while pipeline updates provided more significant developments.

Vertex received positive news regarding its VX-522 program, an inhaled mRNA treatment for cystic fibrosis, with plans to resume dosing following a review of previously announced tolerability issues by the Data Safety Monitoring Board.

The company faced setbacks in its pain management portfolio, including a strategic shift in its chronic pain program after FDA feedback limited potential first approval to diabetic peripheral neuropathy rather than the broader peripheral neuropathic pain label it had targeted. Additionally, its VX-993 compound failed to show statistically significant benefits versus placebo in a Phase 2 trial.

Canaccord also highlighted mixed progress in Vertex’s povetacicept (pove) program, noting positive tracking in IgA nephropathy and primary membranous nephropathy, but the company has prioritized two smaller indications for development while setting aside larger opportunities in lupus nephritis and ANCA-associated vasculitis.

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 positive revenue report, the company faced multiple setbacks in its pain program, impacting its future development plans. These setbacks included a failure to achieve statistical significance in a Phase 2 trial for its next-generation NaV1.8 inhibitor and challenges in securing broad labeling from the FDA for its pain medication, suzetrigine. As a result, several firms have adjusted their price targets for Vertex. Truist Securities lowered its price target to $490, while maintaining a Buy rating, citing the company’s dependence on its cystic fibrosis treatments. H.C. Wainwright also reduced its price target to $478, maintaining a Buy rating, following the pain program setbacks. Stifel and BMO Capital followed suit, lowering their price targets to $455 and $530, respectively, while maintaining their ratings. Bernstein SocGen raised its price target slightly to $471, despite the unfavorable updates to Vertex’s pain pipeline.

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