Vertex upgraded to outperform at BMO on bullish outlook for rare kidney disease candidate
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BMO has upgraded shares of Vertex Pharmaceuticals (VRTX
+1.3%) based on recent promising data for VX-147, its candidate for the rare kidney condition focal segmental glomerulosclerosis ("FSGS").
In December, Vertex reported mid-stage data on VX-147 that demonstrated a clinically meaningful mean reduction in urine protein to creatinine ratio.

The firm previously rated Vertex as market perform. Its new price target is $274, up from $202 (~15% upside from yesterday's close).
"We view the opportunity in FSGS as small but believe expansion into APOL-1 mediated kidney disease could prove meaningful," analyst Evan David Seigerman writes.
He says that Vertex's pipeline is undervalued and could lead to additional upside if candidates are successful.
Seigerman adds that some Vertex investors may be concerned over a data readout expected this quarter of a triple combination therapy for cystic fibrosis that Abbvie (ABBV
-0.5%) is working on. But he notes that Vertex has set the bar high with Trikafta (elexacaftor/tezacaftor/ivacaftor) that Abbvie is unlikely to beat.
Check out Seeking Alpha contributor Denis Buivolov's assessment of Vertex's pipeline.