Wells Fargo downgrades United Therapeutics on IPF data concerns

Wells Fargo analyst Tiago Fauth downgraded United Therapeutics (UTHR) to Equal Weight from Overweight with a price target of $314, down from $395. The firm’s analysis into the fundamental drivers of efficacy in the INCREASE study gives it conviction that it was driven by factors that will be difficult to replicate in TETON. While the stock may work without idiopathic pulmonary fibrosis, Wells moves to the sidelines into the data, the analyst tells investors in a research note. It believes IPF is becoming a pivotal part of the United Therapeutics story. If IPF fails, the company will face investor scrutiny on upcoming competition, capital allocation, and the pipeline, contends Wells.