Analyst Note| Rachel Elfman |
Vertex reported strong first-quarter results highlighted by nearly $2.1 billion in product revenue, representing a 22% increase from the prior year period. We’ve updated our valuation model, and we maintain our fair value estimate of $293 per share and continue to view shares as undervalued. The stock is currently trading in 4-star territory about 14% below our fair value estimate. We maintain our narrow economic moat and positive trend ratings, which are supported by intangible assets and its diversified pipeline spanning six disease areas.