Vertex Pharmaceuticals initiated with a Sector Perform at Scotiabank

Scotiabank initiated coverage of Vertex Pharmaceuticals with a Sector Perform rating and $480 price target Vertex is likely to continue leading the cystic fibrosis market, and pipeline efforts have led to multiple high-profile “shots on goal,” but the continued success is already priced into the shares, the analyst tells investors in a research note. There is a lot to like about Vertex, the firm says, including potential launches for the new vanza triple and suzetrigine in pain, as well as subsequent launches in IgA nephropathy and APOL1-mediated kidney disease, which could possibly drive up revenues by more than 50% from current levels through 2030, but Vertex’s valuation already includes this and likely leaves room for further upside, Scotiabank argues. The firm remains on the sidelines until new launches gain momentum or the entry point becomes more attractive.