"We see no short-term drivers of growth, and multiple indicators of commercial, corporate, and IP weakness. During the last six months, we have struggled with the lack of visibility into the future of UTHR's PAH franchise. In our last quarterly update, we pointed to the need for smart and sizeable business development as a top corporate priority for the company," the analysts wrote to their clients in a note.
The two analysts said, "In the face of weak sales and an IP portfolio under steady attack, "they see the company's share buyback program "as the only driver of near-term value, or rather, savior from near-term erosion of value."
Another negative factor pointed out by the analysts is the scales of indicators that had leaned in UTHR's favor throughout last year may have started tipping in the opposite direction. The brokerage highlighted several topics for a more bearish outlook on the company. That included color on the market dynamics between Orenitram, Uptravi and Tyvaso, with the impact of Uptravi starting to manifest on Tyvaso and Remodulin sales.
The brokerage sees Orenitram growth has been lackluster. Furthermore, the firm stated concern over IP includes the surprising recent settlements. The two analysts fear that share repurchasing might not continue to support value in the face of accelerating erosion.
Shares of the company traded 3.14 percent down to $103.89 at time of writing.
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