Jefferies has upgraded Vertex Pharmaceuticals (VRTX, Financial) from "Hold" to "Buy," citing improved fundamentals and promising progress in its drug pipeline for pain and APOL1-mediated kidney diseases. The investment bank raised the 12-month target price from $500 to $550, with the stock closing at $473.98 recently. Jefferies is optimistic about the stock's upward trajectory following a recent dip and anticipates a significant growth trend between 2026-2030, with a potential R&D pipeline valued at $50-70 billion.
JPMorgan also holds a bullish outlook on biotech stocks for 2025, listing Vertex as a top pick due to its profitable cystic fibrosis franchise and extensive R&D pipeline. With the Federal Reserve expected to lower interest rates, biotech stocks, particularly those with lower valuations, are poised to benefit.
