Vertex Pharmaceuticals (VRTX 2.72%) had a fine Tuesday on the stock exchange. The biotech’s shares closed the day nearly 3% higher in price, on the back of two positive mentions by analysts tracking the company’s fortunes. That rise was slightly more pronounced than the S&P 500 index’s 2.5% increase.
Cantor and UBS sing praises
One of these two impactful publications was issued by Swiss bank UBS analyst Eliana Merle. She reiterated her buy recommendation on Vertex stock, and kept her $583-per-share price target intact.
According to reports, Merle’s update was based on surveys with medical professionals indicating that the company’s next-generation Journavx pain relief treatment is seeing a notable increase in demand.
The second of the pair was part of a broader dive into the current state of pharmaceutical stocks by investment bank Cantor Fitzgerald. The firm presented its new rankings for some of the top names in the field, and flagged Vertex as an overweight (i.e., buy) at $535 per share.
With that tag, Vertex joined sector luminaries such as Zepbound developer Eli Lilly and AbbVie as being buy candidates, in the researcher’s view. Cantor Fitzgerald was more bearish on others, like Pfizer and Amgen, which it rated only neutral.
A different kind of biotech
Vertex is appealing simply by virtue of its business strategy; it concentrates on afflictions with high unmet needs. It also seems to have a knack for filling those needs, as the apparent robust demand for Journavx indicates. I think this stock is well worth a look as a somewhat offbeat way to play the biotech and pharma spaces.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Amgen, Pfizer, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.