Yahoo Finance Does Vertex Have a Significant Upside?
Why Vertex's 1Q16 Earnings Were a Disappointment
Share price estimates for Vertex
Vertex Pharmaceuticals (VRTX) is a global biotechnology company that is based out of Boston, Massachusetts. It is engaged in the development of innovative drugs for life-threatening diseases such as cystic fibrosis (or CF).
Vertex also develops and manufactures drugs in the HIV and hepatitis C virus (or HCV) spaces.
The table above details 20 brokerage companies and their estimated prices for Vertex. The consensus 12-month target price for the company is $113.9, translating to a 31% return against Vertex’s closing price of $86.8 on April 28, 2016.
As per a Bloomberg Survey dated April 27, 2016, 72% brokerage companies rated Vertex as a “buy,” while 28% rated the company as a “hold.” None of the companies issued “sell” ratings on the stock.
On February 16, 2016, Bloomberg reported that Vertex was a “buy” as per 76% analysts. 24% of analysts suggested “holds” for the stock.
Analysts’ recommendations for Vertex’s peers
As per a Bloomberg survey of 26 analysts on April 27, 2016, 50% of analysts issued “buy” ratings for Amgen (AMGN), while 46.2% rated the stock as a “hold.” Just 3.8% of analysts issued “sell” ratings for AMGN.
According to the ratings of 25 analysts in a Bloomberg consensus dated April 27, 2016, 55% of analysts rated Medivation (MDVN) as a “buy,” whereas 45% suggested “holds” on the stock. No analysts recommended “sells” on the stock.
A Bloomberg consensus of 26 analysts on April 27, 2016, indicated that 84.6% of analysts issued “buy” ratings for Celgene (CELG), and 11.5% recommended “holds.” About 3.8% of the analysts gave the stock “sell” ratings.
Biotechnology is a highly volatile industry. Any direct investment into biotechnology stocks can be risky. To mitigate this risk, you can choose to invest in ETFs. One such option is the iShares Nasdaq Biotechnology ETF (IBB). IBB has 3.4% of its total holdings in Vertex.
Let’s discuss Vertex’s performance in next part of the series.
Browse this series on Market Realist:
