D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investing.com - Bernstein SocGen Group raised its price target on Vertex (NASDAQ:VRTX), a prominent player in the Biotechnology industry with a $99.87 billion market cap, to $471.00 from $462.00 on Tuesday, while maintaining a Market Perform rating on the stock. According to InvestingPro analysis, the stock appears to be trading below its Fair Value.
The price target adjustment comes despite Vertex shares falling 14% after hours following unfavorable updates to the company’s pain pipeline, marking the third 10%+ pain-driven sell-off in less than a year.
Vertex reported quarterly revenues of $2.96 billion and earnings per share of $4.52, exceeding consensus estimates by 2% and 7% respectively. Journavx sales reached $12 million, $4 million above consensus expectations.
The research firm’s updated price target reflects a DCF roll-forward, partially offset by a half-turn lower P/E and EV/R multiples, as Bernstein SocGen expects shares to reflect more cautious sentiment on pain treatments.
Vertex’s next-generation pain drug VX-993 missed in a Phase 2 trial, and the FDA does not see a path to a broad pain label, creating uncertainty that overshadowed the company’s otherwise strong financial performance.
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 strong performance, several analyst firms have adjusted their price targets for Vertex. Truist Securities lowered its price target to $490, maintaining a Buy rating, citing the company’s dependence on its cystic fibrosis franchise. H.C. Wainwright reduced its price target to $478 due to setbacks in Vertex’s pain program, while still holding a Buy rating.
Stifel also lowered its price target to $455, maintaining a Hold rating, after Vertex decided not to pursue a broad label for its LSR program in Phase 3 trials. BMO Capital adjusted its price target to $530, maintaining an Outperform rating following a Phase 2 trial failure for Vertex’s ’993 compound. RBC Capital reduced its price target to $405, maintaining a Sector Perform rating, due to challenges in Vertex’s pain franchise, including limited regulatory paths and disappointing results for the Nav1.8 ’993 therapy. These developments highlight the company’s ongoing challenges in expanding beyond its core cystic fibrosis treatments.
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