Follow Us "Vertex Pharma Stock Flooded With Price-Target Hikes After Upbeat Q4 Revenue, 2025 Outlook: Retail Stays Bullish")
synopsis
The company is betting on strong sales of its cystic fibrosis drugs and early traction from its newly approved non-opioid painkiller.
Shares of Vertex Pharmaceuticals, Inc. were in the spotlight in premarket trading Tuesday as the biotech company received multiple price target raises following its quarterly earnings report.
Late Monday, Vertex posted fourth-quarter (Q4) earnings per share of $3.98, just shy of the $4.02 consensus estimate. Revenue came in at $2.91 billion, surpassing Wall Street's expectation of $2.78 billion.
The company also issued a 2025 revenue forecast of $11.75 billion to $12 billion, with the midpoint slightly exceeding analysts' estimates of $11.85 billion.
Vertex is betting on strong sales of its cystic fibrosis (CF) drugs and early traction from its newly approved non-opioid painkiller, Journavx.
CEO Reshma Kewalramani highlighted the company's momentum, calling 2024 a "year of tremendous growth" and emphasizing key milestones ahead, including the launch of Alyftrek, Vertex's fifth CF therapy, and the global rollout of Casgevy, its gene-editing treatment for sickle cell disease and beta-thalassemia.
Analysts responded positively to the results.
According to The Fly, Barclays raised its price target on Vertex to $467 from $435 while maintaining an 'Equal Weight' rating, citing a "modest beat" in Q4 and in-line guidance.
Goldman Sachs raised its target to $615 from $591, and Truist raised its target to $520 from $460, both retaining 'Buy' ratings.
MT Newswires reported that at least seven firms increased their price targets on Vertex after the earnings report.
On Stocktwits, sentiment remained firmly bullish ahead of Tuesday's open despite a slight dip in the stock price.
One trader highlighted the demand for non-opioid pain medications, calling Journavx "a huge opportunity" given concerns over opioid addiction.
Another user was optimistic about Casgevy, noting that management sees it as a multibillion-dollar market opportunity.
According to Reuters, Vertex is targeting five new drug launches by 2028, including an advanced CF therapy and a non-opioid pain treatment.
The stock has gained more than 10% in the past year.
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