UPDATE: Canaccord Genuity Starts Vertex (VRTX) at Buy

Canaccord Genuity initiated coverage on Vertex (NASDAQ: VRTX) with a Buy rating and a price target of $150. Analyst Adam Walsh said KOLs were bullish on VX809/Kalydeco approval, pricing, and launch, and he estimates peak sales potential of $5 billion. Walsh also sees the stock as a takeover candidate.

Walsh explained, "Our KOL (key opinion leader) contacts expect on-time approvals and >90% peak penetration based on strong P3 Traffic/Transport data. We assume the combination will be priced at a ~20% discount to Kalydeco, which yields our peak sales estimate of >$5B. In contrast, our reimbursement specialist KOL believes a price equivalent to Kalydeco is more likely. If our KOL is correct, there may be upside to our peak sales and EPS estimates, as well as valuation."

"Finally, we view Vertex as a legitimate take-out candidate and believe this prospect puts a floor under the shares at current levels," added the analyst.

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 $125.64 yesterday.

You May Also Be Interested In

• Kepler Cheuvreux Starts Jet2 plc (JET2:LN) (DRTGF) at Buy
• Citi upgrades O-I Glass to Buy with $9 price target, opens 90-Day upside catalyst watch
• JPMorgan Starts Select Water Solutions, Inc (WTTR) at Overweight