Liquidia downgraded to Neutral with $79 target, 125% YTD gain
LQDA•Bank of America lowered Liquidia’s rating to Neutral while raising its price target to $79 from $64 after increasing its Yutrepia peak sales forecast to $2.2 billion. The bank cited the stock’s 125% year-to-date gain and uncertainty over a pending patent litigation with United Therapeutics as balancing risks versus upside.
1. Rating Adjustment
Bank of America lowered Liquidia’s rating to Neutral, reflecting a more balanced upside-downside profile after the stock’s 125% year-to-date rally. The downgrade marks a shift from the previous bullish stance despite strengthening fundamentals.
2. Price Target and Sales Forecast
The firm raised its price target to $79 from $64 and increased the peak sales forecast for Yutrepia to $2.2 billion, citing robust initial commercial performance and broader market potential for the inhaled pulmonary hypertension therapy.
3. Patent Litigation Uncertainty
Analysts highlighted ongoing patent litigation with United Therapeutics as a key risk, noting that the outcome could affect Yutrepia’s market exclusivity and long-term revenue projections if unfavorable rulings limit the drug’s commercial window.
