Analyst Note| Rachel Elfman |
Vertex reported solid second-quarter results that outperformed FactSet consensus estimates, driven by continued strong performance of its cystic fibrosis franchise. We’ve raised our fair value estimate to $266 per share from $259 to reflect an improved 2021 outlook based on stronger than expected cystic fibrosis sales. We maintain our narrow moat rating and continue to view shares as undervalued. Vertex is well-supported by lengthy patent protections extending as far as year 2037 and first-mover status in the lucrative cystic fibrosis market, which underpins the basis of our narrow moat rating.