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Fly News Breaks for May 23, 2019
VRTX
May 23, 2019 | 06:36 EDT
Goldman Sachs analyst Salveen Richter assumed coverage of Vertex Pharmaceuticals with a Buy rating and $220 price target. The firm previously had a Neutral rating on the shares. The analyst believes the likely approval of the triple combination regimen in 2020 will extend Vertex's cystic fibrosis opportunity to ~90% of the market. He continues to see margin expansion with his discounted cash flow model suggesting ~30% upside to shares solely from the cystic fibrosis franchise. Further, Richter says that while he attributes no value to Vertex's pipeline, the company's in-house programs and acquired technologies "will begin to bear fruit in 2020 to support the next leg of growth."