Morgan Stanley Trims United Therapeutics (UTHR) Price Target, Maintains Buy Rating

United Therapeutics Corporation (NASDAQ:UTHR) is one of the high-margin pharma stocks to buy now. Morgan Stanley has lowered its price target on United Therapeutics (NASDAQ: UTHR) to $328 from $348, while maintaining an Equal Weight rating, amid broader headwinds facing the biotech and pharmaceutical sectors. The firm flagged persistent macroeconomic challenges and regulatory uncertainties that continue to weigh on investor sentiment across the space.

Morgan Stanley Trims United Therapeutics (UTHR) Price Target, Maintains Buy Rating

A team of scientists in a laboratory, running tests on a biotechnology product.

In a research note to clients, the firm pointed to several factors pressuring large-cap healthcare names this year, including policy volatility around drug pricing, ongoing debates over international transfer pricing, and staffing turnover at the FDA. Against that backdrop, United Therapeutics is facing specific questions about near-term sales performance, particularly around its key pulmonary arterial hypertension therapy, Tyvaso.

Morgan Stanley is now modeling second-quarter Tyvaso sales of $442 million, below the Street consensus of $483 million. Total revenue is expected to reach $768 million, also under consensus estimates of $805 million. The firm attributes the cautious outlook to potential softness in Tyvaso DPI uptake and less momentum in patient onboarding than previously projected.

Despite strong fundamentals and long-term growth driver, including its organ manufacturing pipeline, Morgan Stanley appears to be taking a more conservative stance in the near term. With shares already reflecting much of the upside potential, the firm sees a more balanced risk-reward profile at current levels.

While we acknowledge the risk and potential of UTHR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UTHR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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