In a report released today, Terence Flynn from Morgan Stanley upgraded Vertex Pharmaceuticals to a Buy, with a price target of $516.00.
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Terence Flynn has given his Buy rating due to a combination of factors related to Vertex Pharmaceuticals’ promising pipeline and strategic diversification. The company is making significant strides in its kidney franchise, particularly with the development of Pove and Inaxaplin, which are expected to yield pivotal Phase 3 data by 2026. These advancements are anticipated to drive Vertex’s diversification away from its dominant cystic fibrosis franchise, which is projected to decrease from 98% of sales in 2025 to 49% by 2035.
Flynn’s positive outlook is further supported by the forecasted revenue and earnings per share growth, with a 10-year compound annual growth rate of approximately 8% and 10%, respectively. The analyst also highlights the potential of Pove in treating IgAN, a type of chronic kidney disease, and Inaxaplin in addressing AMKD, a rare kidney disease. These developments, along with Vertex’s strategic efforts to increase diagnosis rates and the lack of approved therapies for AMKD, position the company well for future growth and justify the Buy rating.
In another report released on November 25, Scotiabank also maintained a Buy rating on the stock with a $495.00 price target.