Vertex downgraded to sector perform at RBC due to valuation
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RBC Capital Markets has downgraded Vertex Pharmaceuticals (VRTX
-3.5%) to sector perform from outperform amid rising valuation.
The firm is maintaining its price target of $269 (6% upside based on yesterday's close).
Analyst Brian Abrahams noted that shares are up ~40% in the last two and a half months.

"The stock appears to now be trading at less of a significant disconnect to potential fair value, vs. when competitive concerns around Abbvie (ABBV
+1.5%) looked overdone and the non-CF portfolio completely overlooked," he wrote.
"The stock now looks closer to levels that more fairly balance reward-risk into next catalysts, including regulatory clarity on '147 and data from diabetes and pain programs," he added.
VX-147 is the company's phase 2 candidate for focal segmental glomerulosclerosis.
Read why Seeking Alpha contributor Phillip Stuelcken calls Vertex one of the best biotech stocks to own.