TD Cowen maintains United Therapeutics stock Buy rating

Published 07/05/2025, 17:14
TD Cowen maintains United Therapeutics stock Buy rating

On Wednesday, TD Cowen reaffirmed its Buy rating on United Therapeutics Corporation (NASDAQ:UTHR) with a steady price target of $400.00. The endorsement follows a recent engagement with the company’s management after their first-quarter earnings call. According to InvestingPro data, the company maintains excellent financial health with a perfect Piotroski Score of 9, suggesting strong operational efficiency. Current analysis indicates the stock appears undervalued compared to its Fair Value. Analysts at TD Cowen reported that management discussed the ongoing launch of Tyvaso PH-ILD and expressed confidence in the drug’s prospects for treating Idiopathic Pulmonary Fibrosis (IPF), with initial data expected in the second half of the year. The company’s strong financial position is evident in its impressive 89% gross profit margin and robust revenue growth of nearly 20% over the last twelve months.

The management team at United Therapeutics also shed light on the potential of the company’s xenotransplantation platform. Anticipation is building as the first clinical trial for this innovative technology is slated to commence in mid-2025. The xeno platform, which involves the transplantation of animal organs into humans, represents a significant stride in the field of medical science and could address the chronic shortage of human donor organs.

TD Cowen’s analysts have underscored the current undervaluation of United Therapeutics shares in the market, trading at an attractive P/E ratio of 11.1x. The firm’s position indicates a positive outlook on the stock’s future performance, particularly in light of the company’s advancements in its product pipeline and the upcoming clinical milestones. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, with a notably low debt-to-equity ratio of 0.03.

United Therapeutics Corporation, known for its focus on the development and commercialization of unique products to address the unmet medical needs of patients with chronic and life-threatening conditions, continues to make progress in its endeavors. The company’s commitment to innovation is evident in its approach to both Tyvaso for PH-ILD and IPF, as well as its groundbreaking work in xenotransplantation.

Investors and stakeholders in United Therapeutics Corporation will be watching closely as the company approaches the release of initial data for Tyvaso in IPF and embarks on the pioneering clinical trial for its xeno platform later this year. For deeper insights into UTHR’s valuation and growth prospects, InvestingPro subscribers can access comprehensive Pro Research Reports, which provide detailed analysis of the company’s financial health, market position, and future potential.

In other recent news, United Therapeutics Corporation reported a strong financial performance for the first quarter of 2025, surpassing market expectations. The company achieved record revenue of $794.4 million, significantly exceeding the anticipated $728.34 million, and posted an earnings per share (EPS) of $6.63, above the forecasted $6.53. This marks a 17% year-over-year revenue growth, driven by strong demand across its treprostinil product lines, including Tyvaso and Remodulin. Despite the impressive earnings, BofA Securities maintained a Neutral rating on United Therapeutics’ stock but raised its price target to $321, citing robust first-quarter results and growth prospects for Tyvaso.

Meanwhile, Liquidia Technologies Inc (NASDAQ:LQDA). received a favorable legal ruling when a federal judge dismissed United Therapeutics Corp .’s cross-claims against it, clearing a path for the potential launch of Liquidia’s lung-disease drug, Yutrepia. This development removes significant legal barriers, allowing Liquidia to proceed with Yutrepia’s market entry as United Therapeutics’ exclusivity on a competing product expires. The market’s response to this legal victory was positive, reflecting optimism about Liquidia’s prospects in the lung-disease treatment market.

These recent developments highlight the dynamic landscape in which United Therapeutics and Liquidia Technologies operate, with both companies poised to make significant strides in their respective therapeutic areas.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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