Stifel Nicolaus downgrades Vertex Pharmaceuticals(VRTX:NSD) to Hold from Buy

STA Research
by: STA Research

Stifel Nicolaus downgrades Vertex Pharmaceuticals to  Hold from Buy. The analyst cut the stock’s target to $213 from $244.

Our view of the stock is Bullish with a score of 7.1 out of 10, where 0 is very bearish and 10 very bullish.

What to like

:

High market capitalization This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable. Superior risk adjusted returns This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Low volatility The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns. Superior return on equity The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile. Superior capital utilization The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile. Superior return on assets The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile. Positive cash flow The company had positive total cash flow in the most recent four quarters. Positive free cash flow The company had positive total free cash flow in the most recent four quarters. Superior Earnings Growth This stock has shown top quartile earnings growth in the previous 5 years compared to its sector. High Gross Profit to Asset Ratio This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:

Overpriced compared to earnings The stock is trading high compared to its peers on a price to earning basis and is above the sector median. Overpriced compared to book value The stock is trading high compared to its peers median on a price to book value basis. Overpriced on cashflow basis The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy. Overpriced on free cash flow basis. Overpriced on free cash flow basis The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

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