UPDATE: SVB Leerink Assumes Vertex (VRTX) at Market Perform

SVB Leerink analyst David Risinger assumes coverage on Vertex (NASDAQ: VRTX) with a Market Perform rating and a price target of $265.00.

The analyst comments "We are initiating coverage of VRTX shares with a Market Perform rating and a $265 PT. We forecast 5-yr (’22-’27) CAGR rev +4% and EPS +5%. We see strong cash flow generation potential given Trikafta’s growth prospects and limited competitive threats, but we also believe that the company needs to validate its internal pipeline and pursue M&A to diversify. The company’s most advanced pipeline candidate outside of CF is CTX001, gene editing for sickle cell disease and beta thalassemia, which could be approved in 2H23 but faces adoption constraints and a crowded competitive landscape. Vertex recently announced positive Ph 2 data VX-548 for pain and plans to initiate Ph 3 trials in 2H22; we believe this could be a blockbuster if it delivers compelling Ph 3 results. VRTX has a small molecule inhibitor of APOL1 for severe kidney diseases in Phase 2/3 which generated compelling data in a small clinical trial. VX-880 for Type 1 diabetes is essentially a “next generation” islet cell transplant therapy in early development (currently on FDA clinical hold)."

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 $258.59 yesterday.

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