UPDATE: Stifel Downgrades Vertex (VRTX) to Hold

Stifel analyst Paul Matteis downgraded Vertex (NASDAQ: VRTX) from Buy to Hold with a price target of $213.00 (from $244.00).

The analyst comments "We are downgrading VRTX to Hold. We agree somewhat with the bull case that Vertex’s CF franchise supports the valuation today, or even some upside to the current price. That said, for the stock, the path to proving this out is equivocal at best, given that the CF bull/bear valuation discrepancy centers largely around peak sales potential, franchise longevity, and how to think about the terminal value (different circumstances, but reminders of ALXN's Soliris). In this vein, we’ve done a deeper dive into a few key pipeline assets, including VX-147 (FSGS--data 4Q) and T1D (mainly VX-880). Bottom line: we view each as interesting but still very high risk, and we're skeptical that either addresses a market opportunity that's needle moving for the stock as CF grows towards ~$9-$10B. Thus, whether VRTX outperforms may be more dictated by BD (usually not a stock booster) or a takeout (possible, but low probability)."

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 $191.37 yesterday.

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