United Therapeutics Corp. (UTHR) Could Return to Growth in 4Q, Ahead of Several Key Catalysts - Oppenheimer

Oppenheimer analyst Hartaj Singh reiterated an Outperform rating and $175.00 price target on United Therapeutics Corp. (NASDAQ: UTHR) highlighting the company as a potential turnaround that the Street is just beginning to rediscover. Upcoming catalysts include Orenitram strength on FREEDOM-EV label, Tyvaso PH-ILD PDUFA in 04/21, possible TreT DPI inhaler approval in 2022 and Remodulin pump launches in 2021/22. Currently PH-COPD and PH-IPF are wildcards not included in the model yet. The company has had two years of negative revenue and adjusted earnings trends (2018/19), after losing its patent protection for >$350M (2017) drug Adcirca and intense concerns around its core treprostinil franchise. However, the Street is beginning to look ahead to growth with shares up ~69% YTD.

The analyst believes this could be the beginning of a strong re-rating. He stated "In 2021, UTHR could return to revenue/adjusted earning's growth after two years of revenue/earnings decline due to a patent loss on Adcirca, starting in 2018 (~21% of top-line). The company endured further multiple compression in early 2019, as generics to Remodulin (~40% of top-line) entered the US. We believe the company could see revenue/earnings growth as early as 4Q20, reflecting our "value to growth" moniker".

For an analyst ratings summary and ratings history on United Therapeutics Corp. click here. For more ratings news on United Therapeutics Corp. click here.

Shares of United Therapeutics Corp. closed at $148.68 yesterday.

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