UPDATE: Morgan Stanley Downgrades Vertex Pharmaceuticals to Underweight

Morgan Stanley lowers its rating on Vertex Pharmaceuticals VRTX to Underweight from Equal-weight on valuation concerns and pipeline risks. Morgan Stanley says, "An NPV sum of parts (SOP, details inside) for us and consensus is $22-23/sh. The stock has risen ~60% over the past 4 mos. ($~26 to $~42) without a clear fundamental catalyst. To us, this implies that pipeline value may be up to 50% of the current stock price, with combo CF (where we are negatively biased) likely being the main focus." VRTX closed at $42.94 a share on Friday.