In a research report published Monday, JP Morgan analyst Cory Kasimov maintained an Overweight rating on Vertex Pharmaceuticals (NASDAQ:VRTX) with a price target of $130, following a meeting with the company’s management, ahead of the 2015 J.P. Morgan Healthcare conference, which kicks off this morning.
Kasimov wrote, “The co sounded a positive tone ahead of what we expect to be an eventful 2015 with a focus on the broad development plan for the ‘661/Kalydeco combo and further growth potential of Kalydeco. VRTX also provided 2015 Kalydeco net revenue guidance of $560-580M (JPMe $636M, cons $675M). Although Kalydeco estimates are below consensus, we note this guidance incorporates a headwind from Kalydeco pt enrollment in the ‘661 studies, which we believe is not incorporated in Street estimates.”
The analyst concluded, “With a largely de-risked and dominant CF franchise, several pending value-creating catalysts, a cash cushion of ~$1.4B, and an estimated turn to profitability in late 2015 (with significant leverage thereafter), we see the potential for additional meaningful upside in VRTX.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a total average return of 16.1% and a 57.6% success rate. Kasimov has a 0.9% average return when recommending VRTX, and is ranked #442 out of 3420 analysts.