UBS Trims Price Target but Stays Bullish on United Therapeutics (UTHR)

United Therapeutics Corp. (NASDAQ:UTHR) is one of the 11 best debt-free stocks to invest in right now. The company boasts a strong portfolio led by Tyvaso, its inhaled therapy for pulmonary hypertension, and a growing pipeline targeting pulmonary arterial hypertension (PAH). Its existing therapies are leading to stronger topline and earnings growth; the 17% year-over-year growth in Q1 2025 revenue and a 17% compounded annual growth rate (CAGR) over the last five years are evidence of that.

UBS analyst Ashwani Verma maintained a Buy rating on United Therapeutics (NASDAQ:UTHR) on June 30 but adjusted the price target to $385 from $410, reflecting a recalibration of expectations ahead of a key clinical update. Verma pointed to the company’s upcoming Phase III readout for idiopathic pulmonary fibrosis (IPF), expected in the third quarter, as a potential high-impact event that could meaningfully influence the stock. While binary in nature, the analyst believes the risk/reward remains attractive at current valuation levels.

Verma also highlighted Tyvaso as a continued bright spot for the company. He expects the therapy to see seasonally strong performance in both Q2 and Q3, which should support near-term revenue momentum.

While we acknowledge the potential of UTHR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.