Vertex (VRTX) PT Lifted to $180 at Piper Jaffray as KALYDECO and ORKAMBI Both Beat

Piper Jaffray analyst Edward Tenthoff reiterated an Overweight rating and boosted his price target on Vertex (NASDAQ: VRTX) to $180.00 (from $163.00) following solid Q3 results with KALYDECO and ORKAMBI both beating.

Tenthoff commented, "Over 3,000 patients began ORKAMBI in 3Q:15 resulting in sales of $130.8 million, beating most recent Street consensus of $90 million. KALYDECO sales of $165.9 million in 3Q:15 also beat Street consensus of $153 million, up 33% annually based on label and geographic expansion. Management increased 2015 KALYDECO guidance to $605-620 million from $575-590 million. As a result, 3Q:15 non-GAAP net loss of ($0.13) per share beat Street consensus of ($0.29) (FactSet). We now forecast total CF revenues of $1.0 billion this year, $2.6 billion in 2016 and $3.5 billion in 2017. We project CF revenue acceleration will return Vertex to sustainable profitability with non-GAAP EPS estimates of $3.61 in 2016E and $5.92 in 2017E. We reiterate our Overweight rating and are increasing our price target to $180 from $163 by applying same 35x multiple to increased 2017E non-GAAP EPS discounted back at same 15% now through YE:16E."

The firm raised FY 205 EPS from ($2.52) to ($2.04) and FY 2016 EPS from $1.54 to $1.86.

For an analyst ratings summary and ratings history on Vertex click here. For more ratings news on Vertex click here.

Shares of Vertex closed at $120.10 yesterday.

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