Vertex Pharma (VRTX): Cutting Ests But Maintaining Rating And PT After Orkambi Cut - Stifel
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Stifel analyst, Adam Walsh, reiterated his Buy rating on shares of Vertex (NASDAQ: VRTX) after the company received FDA approval for Orkambi in patients ages 6 to 11 (2,400 new patients) but also cut guidance on a slower than expected ramp.
The approval was widely expected, already included in management’s FY16 Orkambi guidance and baked into sellside models. However, management also lowered Orkambi guidance for 3Q16 and FY16, which is not altogether surprising on the heels of management’s cautious comments at a recent investor conference.
The analyst had cut his numbers at that time in anticipation of a soft quarter but this guidance prompts him to further trim 3Q16 and FY16 Orkambi estimates by $16M and $18M, respectively. He is maintaining Orkambi numbers in FY17 and beyond.
He continues to expect a 4Q16 announcement on the P1 triple combo data and P2 trial design to support shares near term, assuming positive P1 outcome. VX-661 data from three P3 trials in 1H17 represents additional potential drivers
No change to the price target of $109.
Shares of Vertex closed at $88.84 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Oppenheimer Cuts Price Target on Workday (WDAY) Following 3Q; Reiterates Outperform
- Jefferies Raises Price Target on US Physical Therapy (USPH) to $63 Following 12-Clinic Acquisition
- Jefferies Cuts Price Target on PG&E Corp. (PCG) to $65 Following Rate Case Decision
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!