$VRTX BOFA initiates Vertex with BUY and $220 target.
Entry level $179 = Target price $190 = Stop loss $174
Momentum and RSi are extremely strong.
Above $178 bullish trade entry having cleared MA resistance.
Earnings approaching, possible stimulant.
Vertex initiated at BofA/Merrill Vertex reinstated with a Buy at BofA/Merrill. BofA/Merrill analyst Geoff Meacham reinstated coverage of Vertex with a Buy rating and $220 price target, citing the company's differentiated growth profile, upside potential in the upcoming triple combination therapy launch, and an emerging orphan disease pipeline.
thefly.com
Vertex’s shares have lost 0.6% over the past three months compared with the Zacks Biomedical and Genetics industry’s decline of 4.7%. The Zacks analyst believes that Vertex’s third cystic fibrosis (CF) medicine, Symdeko, in a very short time, has become the main driver of its CF revenues.
Vertex rapidly advanced its triple combination CF regimen through late-stage development and regulatory filings. The regimen is crucial for long-term growth as it has the potential to treat up to 90% of CF patients. Meanwhile, Vertex’s non-CF pipeline, though early stage, looks interesting with several pipeline readouts expected in 2020-21.
However, competitive pressure is rising in the CF market with many other companies developing triple combo CF drugs. Also, Vertex’s dependence on just the CF franchise for growth is a concern. Shares have outperformed the industry this year so far. Estimates have gone up slightly ahead of Q3 earnings. Vertex has a positive record of earnings surprises in the recent quarters.
Source ZACKS.com
Momentum and RSi are extremely strong.
Above $178 bullish trade entry having cleared MA resistance.
Earnings approaching, possible stimulant.
Vertex initiated at BofA/Merrill Vertex reinstated with a Buy at BofA/Merrill. BofA/Merrill analyst Geoff Meacham reinstated coverage of Vertex with a Buy rating and $220 price target, citing the company's differentiated growth profile, upside potential in the upcoming triple combination therapy launch, and an emerging orphan disease pipeline.
thefly.com
Vertex’s shares have lost 0.6% over the past three months compared with the Zacks Biomedical and Genetics industry’s decline of 4.7%. The Zacks analyst believes that Vertex’s third cystic fibrosis (CF) medicine, Symdeko, in a very short time, has become the main driver of its CF revenues.
Vertex rapidly advanced its triple combination CF regimen through late-stage development and regulatory filings. The regimen is crucial for long-term growth as it has the potential to treat up to 90% of CF patients. Meanwhile, Vertex’s non-CF pipeline, though early stage, looks interesting with several pipeline readouts expected in 2020-21.
However, competitive pressure is rising in the CF market with many other companies developing triple combo CF drugs. Also, Vertex’s dependence on just the CF franchise for growth is a concern. Shares have outperformed the industry this year so far. Estimates have gone up slightly ahead of Q3 earnings. Vertex has a positive record of earnings surprises in the recent quarters.
Source ZACKS.com