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United Therapeutics Corp.'s (UTHR) 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 EPS estimate.
UTD THERAPEUTIC (UTHR): Free Stock Analysis Report
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