Vertex Pharmaceuticals' (VRTX) near-term data cementing the bright prospects of investigational drug povetacicept and a potential decline in competitive overhang for the cystic fibrosis platform should compel a higher valuation and create upside in 2026, RBC Capital Markets said in a note Thursday.

Analysts said sales from the cystic fibrosis platform are expected to range from $12.5 billion to $13.5 billion for more than 10 years, and noted that CF products plus net cash are worth approximately $400 per share, indicating that the present stock price is no longer factoring in "overexuberant" pipeline assumptions.

RBC believes that povetacicept has "multi-billion, product-in-a-pipeline potential," given phase 2 data showing "competitive" proteinuria reductions. The investigational drug is likely to secure a place in a market where premium pricing is already established by first-mover Otsuka and even a split market could lead to $2.2 billion peak US sales in IgA nephropathy, the brokerage said.

The lower buzz around pain management is also a plus for the stock, and it may improve the potential setup into H1 2027 for later-stage clinical trials, which are still risky but could ultimately add an additional $2.9 billion in future US sales, the firm said.

RBC upgraded Vertex to outperform from sector perform, and raised the price target to $546 from $455.

Shares of the company were up 1.5% in recent Thursday trading.

Price: 468.15, Change: +7.01, Percent Change: +1.52