United Therapeutics Corp.'s
) second quarter earnings of $1.43 per share were well above the
year-ago earnings of $1.19 and the Zacks Consensus Estimate of
$1.12. Higher revenues led to the improvement in earnings. The
company maintained its guidance for 2012. We believe the company is
well-positioned to gain share in the pulmonary arterial
hypertension (PAH) market.
Lead product Remodulin continues to look very strong in both the
intravenous (IV) and subcutaneous (SC) forms. With the approval of
Adcirca and Tyvaso, the company has a varied range of therapies
available for the treatment of PAH. We believe the company's PAH
product portfolio will drive strong top-and bottom-line growth.
We maintain our Outperform recommendation on United Therapeutics,
which carries a Zacks #2 Rank (short-term Buy rating). We have
raised our target price by $5 to $70 based on the strong second
quarter results. Our new price target is based on 14.0x our 2012
UTD THERAPEUTIC (UTHR): Free Stock Analysis
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