Shares of Vertex Pharmaceuticals (NASDAQ: VRTX) are down about 8% from a peak they reached this January. The price action doesn't jive with the biopharmaceutical company's cash flows and the potential value of the assets it's developing.

Following some encouraging announcements in its recent first-quarter report, Piper Sandler raised its price target on Vertex stock to $456 per share, which implies a gain of around 12% over the next 12 months.

In addition to unrivaled cystic fibrosis (CF) treatments, analysts are encouraged by several new blockbuster drugs that could be in Vertex's development pipeline. Here are five reasons Wall Street is right to pound the table on this stock.

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Source Fool.com