Vertex Pharmaceuticals Incorporated
Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) is a multinational biotechnology firm focused on discovering and developing small-molecule medicines to treat acute diseases. Its primary medications for cystic fibrosis are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio, and Vertex therapies remain the standard of treatment globally.
Why should Investors Sell?
Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation
(Analysis by Kalkine Group)
VRTX Daily Technical Chart (Source: REFINITIV)
VRTX's stock price has surged 24.48% in the past three months and is currently leaning towards the higher-band of the 52-week range of USD 176.36 to USD 242.99. The stock is currently trading above its 50 and 200 DMA levels, and its RSI Index is 82.23, indicating an overbought zone. We have valued the stock using the EV/EBITDA multiple-based relative valuation methodology and arrived at a target price of USD 205.03.
Considering the risk of disruption in the supply chain, current valuation, and bearish technical indicators, we believe the decent business fundamentals are adequately reflected at current trading levels. Hence, we recommend a "Sell" rating on the stock at the closing price of USD 234.06, down 1.39%, as of January 14, 2022.
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.