William Blair analyst Myles Minter has reiterated their bullish stance on VRTX stock, giving a Buy rating on May 2.
Myles Minter has given his Buy rating due to a combination of factors that highlight Vertex Pharmaceuticals’ potential for growth despite some short-term challenges. The company’s total revenue for the quarter was slightly below expectations, primarily due to a $100 million impact from unauthorized copies of their product in Russia. However, the management’s decision to raise the lower end of their full-year revenue guidance indicates confidence in their long-term prospects, suggesting that the negative impact has been adequately accounted for.
Minter also notes the temporary pause in the Phase I/II study of inhaled VX-522 due to a tolerability issue. Despite this setback, the decision to pause rather than discontinue the study implies that the data collected so far is promising. Additionally, the uptake of Alyftrek across all cystic fibrosis subgroups, although below initial estimates, shows potential for growth as it gains traction in the market. These elements combined paint a picture of a company with strong fundamentals and promising future developments, justifying the Buy rating.
In another report released on May 2, BMO Capital also maintained a Buy rating on the stock with a $557.00 price target.