Vertex Pharmaceuticals price target lowered to $420 from $423 at RBC Capital

RBC Capital analyst Brian Abrahams lowered the firm’s price target on Vertex Pharmaceuticals (VRTX) to $420 from $423 and keeps a Sector Perform rating on the shares. With recent management commentary suggesting that the switch to next-gen CF, cystic fibrosis, cocktail Alyftrek from Trikafta – by far the company’s largest potential patient pool- – has been gradual, the firm has performed a sensitivity analysis on the potential impact to revenue, margins, earnings, and valuation should market conversion and Alyftrek’s uptake ultimately be lower than expected, the analyst tells investors in a research note. RBC concluded that a bearish launch scenario vs. consensus would negatively impact out-year operating margins by about 2% and fair value by $14.