Janney Capital Markets Reiterates Buy On Vertex Following 2Q14 Revenue Release


In a research report issued yesterday, Janney Capital Markets analyst Kimberly Lee reiterated a Buy rating on Vertex Pharmaceuticals Inc. (VRTX) and gave it a Fair Value Estimate of $110. The report follows 2Q14 earnings, where it reported revenues of $113M and an EPS of $(0.61) which came in below consensus of $116M and $(0.56).

 Lee noted, “We project that triple combination therapy will likely be pathway to treat the heterozygous population but await Phase II data in early 2015 to make a final determination. We reiterate our BUY rating and $110 fair value estimate, which is based on a DCF analysis of cash flows through 2021”. Furthermore the analysts said, “VRTX announced that VX-809 plus Kalydeco missed the primary endpoint of mean absolute change in FEV1 in a Phase II study in patients with heterozygous F5809del (-0.62% vs. -1.23% for placebo; p=0.1287). The mean absolute treatment difference was 0.61% (p=0.5978). We had expected this outcome given the challenges in this patient population”.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform analyst Kimberly Lee has a 6.7% average return and a 52.2% success rate. Lee has a 12.5% average return when recommending VRTX, and is ranked #1150 out of 3190 analysts.

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