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On Thursday, BofA Securities analyst Greg Harrison updated the financial outlook for United Therapeutics Corp . (NASDAQ: NASDAQ:UTHR), increasing the price target to $321 from the previous $314. The adjustment comes in the wake of a robust first-quarter performance by the biotechnology company, which exceeded revenue expectations. The $13.6 billion market cap company, currently trading at $303.09, has shown impressive financial metrics according to InvestingPro data. Despite the positive financial results, the firm maintained a Neutral rating on the stock.
United Therapeutics reported a strong first quarter, surpassing revenue estimates set by BofA Securities and the consensus. InvestingPro data reveals the company achieved impressive 19.85% revenue growth over the last twelve months, supported by industry-leading gross margins of 89%. The company’s diverse portfolio of products contributed to the financial success, particularly highlighting the continued growth prospects for Tyvaso, a treatment for pulmonary arterial hypertension (PAH) and interstitial lung disease (ILD). The company expects Tyvaso to experience double-digit growth over the next two years, even in the face of increasing competition in the market.
The analyst noted that the first-quarter results support the view that there are still substantial market opportunities in the treatment of PAH and ILD in the near term. The launch of a competing product is seen as a rising tide that could benefit all players in the sector. BofA Securities also believes that the current stock price reflects the potential long-term risks associated with Insmed (NASDAQ:INSM)’s TPIP, an investigational product in the same therapeutic area.
The revised price objective of $321 per share is now grounded in a discounted cash flow (DCF) valuation method, as opposed to the previous price-to-earnings (P/E) methodology. This change is based on updated revenue forecasts and reflects a more comprehensive evaluation of the company’s financial prospects.
In conclusion, while BofA Securities recognizes the strong performance of United Therapeutics in the first quarter and the expected growth of Tyvaso, the firm’s stance remains neutral, citing a balanced risk/reward scenario for the company’s shares. InvestingPro analysis indicates the stock is trading slightly above its Fair Value, with a "GREAT" overall financial health score of 3.67 out of 5. The updated price target reflects a cautious optimism about the company’s financial trajectory, tempered by the potential market challenges ahead. For deeper insights into UTHR’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, United Therapeutics Corporation reported impressive first-quarter 2025 financial results, surpassing market expectations. The company achieved an earnings per share of $6.63, exceeding the forecasted $6.53, and generated record revenue of $794.4 million, well above the anticipated $728.34 million. This performance marks a 17% year-over-year revenue growth, driven by strong demand across all treprostinil products, including Tyvaso and Remodulin. Despite these achievements, the stock experienced a slight decline in pre-market trading, possibly due to broader market conditions.
The company continues to focus on innovation and strategic acquisitions to enhance its organ alternative development capabilities. United Therapeutics has maintained double-digit revenue growth for 11 consecutive quarters, reflecting its strong market position and effective execution of growth strategies. Analysts from firms such as TD Cowen and JPMorgan have noted the company’s robust performance and potential for future growth. Additionally, United Therapeutics is preparing for significant developments, including the first uKidney transplant in the EXPAND study and potential commercialization of Ralinepag. These recent developments underscore the company’s commitment to maintaining its market leadership and expanding its product offerings.
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