Analyst Terence Flynn of Morgan Stanley maintained a Hold rating on United Therapeutics (UTHR – Research Report), reducing the price target to $346.00.
Terence Flynn’s rating is based on several considerations surrounding United Therapeutics’ recent performance and future prospects. The company’s fourth-quarter results showed a decline in Tyvaso sales, which fell short of market expectations, and this was compounded by a larger-than-expected gross-to-net deduction due to recent contracting efforts. Additionally, the anticipation of FDA action on a competitor’s product, Yutrepia, later in the year adds uncertainty to the stock’s outlook.
Furthermore, while United Therapeutics anticipates growth in Tyvaso for interstitial lung disease, there is pressure from competitors in the pulmonary arterial hypertension market. The company expects double-digit revenue growth into the mid-decade, but this is tempered by modest adjustments to estimates and the need to await key pipeline developments, such as the Phase 3 data for Tyvaso in IPF expected in the second half of 2025. These factors contribute to the cautious Hold rating, reflecting a balance between potential growth and existing challenges.
Based on the recent corporate insider activity of 273 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UTHR in relation to earlier this year.