Vertex Pharmaceuticals Incorporated: Analyst Cory Kasimov Provides Update From Inside The J.P. Morgan Conference
J.P. Morgan analyst Cory Kasimov is out today with an update on Vertex Pharmaceuticals Incorporated (NYSE:VRTX), straight from the 2016 J.P. Morgan Healthcare Conference. The analyst rates the stock an Overweight with a price target of $153, which represents a potential upside of 49% from where the stock is currently trading.
Kasimov wrote, “In the long term, regardless of what happens in the US with pricing, VRTX feels they have transformative medicines for rare disease; with high revenue growth coupled with low G&A, the co feels they are in a good position from an operating margin perspective.” Furthermore, “The co is at a pivotal point from turning profitable and cash flow positive; can think about investing in the company, investing in BD, and the capital structure of the company (can soon start considering buybacks).”
The analyst highlights potential catalysts for the stock: “Potential approval of Kalydeco in residual function pts is expected by the Feb 7th PDUFA. Orkambi safety data for F508del homozygous pts ages 6-11 is expected in early 2016, with a sNDA submission in 2Q16. On the Phase 3 ‘661/Kalydeco program, the studies in F508del homozygous and het min pts are expected to complete enrollment by mid- 2016 with data in early 2017 and interim futility analysis complete by YE16, respectively. The two studies in gating and residual function pts should complete enrollment by year-end with data in 1H17. Next-gen corrector healthy volunteer safety data is expected around mid-year with triple combo studies planned for 2H16. On the ENaC inhibitor, Phase 2a data in CF pts with any CFTR mutation is expected in mid-2016.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a yearly average return of -9.7% and a 28.9% success rate. Kasimov has a -0.8% average return when recommending VRTX, and is ranked #3539 out of 3610 analysts.
Out of the 18 analysts polled by TipRanks, 15 rate Vertex Pharmaceuticals Inc. stock a Buy, while 3 rate the stock a Hold. With a return potential of 52%, the stock’s consensus target price stands at $155.71.