Vertex Pharmaceuticals (VRTX) reported a solid Q2 and raised its outlook, highlighting the strength of its core business and pipeline, RBC Capital Markets said in a note emailed Tuesday.
The analysts said the stock could benefit once the Sionna Therapeutics (SION) data overhang clears, with upcoming catalysts including the launch of new products, the expected closing of the Crinetics Pharmaceuticals (CRNX) deal, and additional pipeline readouts.
The stock does not fully reflect the potential upside from pipeline opportunities, including kidney programs, expansion of povetacicept into autoimmune diseases such as IgA nephropathy and generalized myasthenia gravis, and the longer-term potential of suzetrigine in chronic pain, the analysts added.
"We believe that given Vertex's strong core revenue, a pipeline that is increasingly becoming more mature, and with optionality to further diversify pipeline with external [business development,] shares should command a higher valuation," the analysts said.
RBC lowered its price target on Vertex Pharmaceuticals to $570 from $577 and kept its outperform rating on the stock.
Price: 477.03, Change: +6.30, Percent Change: +1.34
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