Do Analysts See Any Upside for Vertex Stock?


Dec. 20 2018, Updated 7:30 a.m. ET

Analysts’ recommendations

Of the 25 analysts covering Vertex Pharmaceuticals (VRTX), 21 recommend “buy” or a higher rating, and four recommend “hold.” Their mean rating for Vertex stock is 1.84, and their target price is $201.82, implying a 23.5% upside for the stock based on its December 18 closing price of $163.43.

Article continues below advertisement

Peers’ ratings

In comparison, analysts have given Amgen (AMGN), Biogen (BIIB), and Pfizer (PFE) mean ratings of 2.33, 2.03, and 2.72, respectively, and target prices of $204.80, $388.35, and $44.15.

Vertex’s current ratio, which shows how effectively it can meet its short-term obligations, is 3.70x. In comparison, Amgen’s, Biogen’s, and Pfizer’s current ratios are 3.10x, 2.70x, and 1.40x, respectively.

Stock performance

After rising from $147.50 on June 27 to a high of $192.74 on September 28, Vertex stock corrected to $159.76 on November 20. Initial buying interest then took it to $184.65 on December 3 before the stock corrected again. It currently stands at $163.40.

Vertex’s long-term debt-to-equity ratio is 0.20x, whereas Amgen, Biogen, and Pfizer have debt-to-equity ratios of 2.05x, 0.43x, and 0.47x, respectively.

In fiscal 2018 and fiscal 2019, Vertex’s free cash flow is expected to be $778.63 million and $1.12 billion, respectively, compared with $745.52 million in fiscal 2017. Its price-to-free-cash-flow ratio is 36.12x, while Amgen’s, Biogen’s, and Pfizer’s ratios are 17.65x, 10.41x, and 25.57x, respectively.


More From Market Realist

  • BioNano Genomics Saphyr system
    Company & Industry Overviews
    BioNano Genomics (BNGO) Stock Looks Like a Buy, Solid Opportunity
  • Delta aircraft
    Company & Industry Overviews
    Delta Air Lines Updates Mandatory Vaccine Policy, Explained
  • AMC advertisement in walkway
    Company & Industry Overviews
    Why It's Time for Most Investors to Sell AMC Entertainment Stock
  • 100 Thieves founder Matthew Haag
    Company & Industry Overviews
    Why Growing Esports Company 100 Thieves Isn't Publicly Traded
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.