Vertex (VRTX) Investors Buying Here Get the Pipeline for Free - Jefferies

Jefferies analyst Andrew Tsai reiterated a Buy rating and $335.00 price target on Vertex (NASDAQ: VRTX) on the belief that the recent risk off environment has reached a point where the company's valuation is discounting $0 for the pipeline, despite being the "cleanest" large cap biotech growth story with a guidance raise likely.

The analyst stated "we argue that the current stock price largely reflects the CF base business ($225-240, including an under-appreciated royalty windfall from new Phase III CF oncedaily Super Trikafta) plus $8-14B in cash ($35-50/sh) now piling up from hefty FCF generation. Thus, the 4-5 pipeline programs now going into mid/late stage are particularly attractive but aren't well priced into the stock as they play out over the next 1-3 years. We have raised our Long View upside scenario to $400 based on greater confidence in the pipeline, which could add $10B in risk-unadjusted peak sales, up from $5B prior."

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 $273.73 yesterday.

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