Goldman Sachs Issues Sell Ratings for UTHR, SGMT Amid Commercial Concerns

Shares of United Therapeutics (UTHR) and Sagimet Biosciences (SGMT) took a hit on Thursday after Goldman Sachs issued sell ratings on both stocks. The brokerage firm resumed coverage of multiple biotech companies, citing concerns about the commercial potential of their lead products.

Goldman Sachs initiated coverage of UTHR with a sell rating and a 12-month target price of $321. Analysts argued that despite having a declining business, UTHR trades at a premium to its historical P/E multiple, which they attribute to forward expectations for long-term growth tied to a nebulized version of Tyvaso in idiopathic pulmonary fibrosis and PAH therapy.

The analysts also cited a commercial IPF opportunity as more challenging than currently anticipated. They noted that while the market assumes a strong launch in PAH, any hurdles could raise doubts about Jenraldi's ability to support UTHR's forward growth profile.

Goldman Sachs resumed coverage of Sagimet with a sell rating and a 12-month price target of $7. Analysts argued that denifanstat, the company's lead candidate for moderate-to-severe acne and MASH, faces challenging commercial dynamics in the US acne market.