Goldman Sachs Slaps Sell Rating on United Therapeutics Corp.

Goldman Sachs has initiated coverage on United Therapeutics Corp. (UTHR) with a Sell rating and a price target of $321.00, representing a 34% downside versus 23% upside for its coverage universe.

The firm said the price target reflects the stock's high valuation premium, with UTHR trading at a price-to-earnings ratio of 17.5, compared to a 10-year median of 13x.

Goldman Sachs analyst Andrea Newkirk noted that the commercial opportunity in idiopathic pulmonary fibrosis (IPF) is more challenging than currently appreciated, citing burdensome dosing frequency and tolerability issues that will limit uptake and adherence.

The firm projects peak sales of $1.9 billion in 2030, which is lower than the consensus peak of $4.1 billion in 2034.