Morgan Stanley analyst Terence Flynn has maintained their neutral stance on VRTX stock, giving a Hold rating on February 20.
Terence Flynn has given his Hold rating due to a combination of factors impacting Vertex Pharmaceuticals. One significant reason is the ongoing development of VX-522, an inhalable mRNA therapy aimed at treating cystic fibrosis patients who do not respond to existing CFTR modulator therapies. This program is still in the early phases, with meaningful proof-of-concept results expected by the second quarter of 2025. The potential of VX-522 to address a critical unmet need for over 5,000 patients underscores its importance, yet its outcome remains uncertain at this stage.
Despite the promising nature of VX-522, Flynn’s rating reflects the cautious stance due to the inherent uncertainties in early-stage drug development. While successful results could positively impact Vertex’s stock, the lack of current estimates for VX-522 in financial models indicates a wait-and-see approach. This cautious outlook is compounded by the competitive landscape, where other companies are also pursuing similar therapeutic approaches, adding another layer of uncertainty to Vertex’s prospective success.
In another report released on February 20, RBC Capital also maintained a Hold rating on the stock with a $408.00 price target.