Vertex Pharmaceuticals downgraded to hold at Jefferies on valuation, stock outperformance
ozgurdonmaz


Jefferies has downgraded Vertex Pharmaceuticals (NASDAQ:VRTX) to hold from buy and taken the stock off its franchise pick list due to its current valuation and strong performance this year.
The firm has a $340 price target (12% upside based on Friday's close).

Analyst Michael Yee said that Vertex is up ~40% year-to-date and has a ~$80B valuation.
He noted that while the biotech's fundamentals are good and pipeline is strong, "this is fairly accounted for in our current probability adjusted [sum of the parts] valuation."
Yee wrote that although VX-548, a chronic pain candidate, could be a potential blockbuster, top-line phase 3 data will not come until late 2023 at the earliest.
Seeking Alpha contributor ONeil Trader has a buy rating on Vertex (VRTX), but notes the company will need to rely on its pipeline and business development as its core cystic fibrosis franchise will peak soon.