Goldman Sachs initiates United Therapeutics stock with sell rating

Goldman Sachs has initiated coverage on United Therapeutics Corp. (NYSE:UTHR) with a Sell rating and a price target of $321.00. The company's stock currently trades at $489.42 with a P/E ratio of 17.5, although it appears overvalued according to InvestingPro's Fair Value analysis. Goldman Sachs notes the stock trades at a price-to-earnings ratio of 17-18x on their scale, versus the 10-year median of 13x.

Despite the valuation premium, United Therapeutics has been aggressively buying back shares, according to an InvestingPro Tip. The company's forward expectations include the potential launches of nebulized Tyvaso for idiopathic pulmonary fibrosis (IPF) and Jenraldi (ralinepag) for pulmonary arterial hypertension (PAH) in mid-2027, but Goldman Sachs believes the commercial opportunity in IPF is more challenging than expected.

This is due to burdensome dosing frequency and tolerability issues that may limit uptake and adherence. Goldman Sachs projects peak sales of $1.9 billion in 2030 for IPF, compared to the consensus peak of $4.1 billion in 2034. For Jenraldi, Goldman Sachs and consensus both anticipate a peak sales figure of $1.4 billion and $1.6 billion respectively.

However, Goldman Sachs analyst Andrea Newkirk warns that payor dynamics and real-world tolerability could raise doubts about the growth profile of United Therapeutics. In their latest earnings report, United Therapeutics reported earnings of $7.27 per share for Q2 2026, beating analyst estimates of $7.09. However, revenue for the quarter was $783.3 million, which was below the projected $807.05 million, resulting in a revenue miss of roughly 2.9%.

Due to these mixed results, BofA Securities has lowered its price target for United Therapeutics from $613 to $559, while maintaining a Neutral rating.