On Monday, Barclays updated its outlook on Travere Therapeutics (NASDAQ:TVTX), increasing the stock's price target from $14.00 to $18.00. The firm maintained its Overweight rating on the biopharmaceutical company's shares. The revision reflects the analyst's expectation of positive developments in the company's regulatory journey.
The analyst at Barclays highlighted upcoming updates on Focal Segmental Glomerulosclerosis (FSGS) as key drivers that could de-risk the regulatory path for Travere Therapeutics. These updates are anticipated to add more than $300 million to the U.S. peak sales potential and provide significant operating leverage for the company.
The momentum for Travere's IgA Nephropathy (IgAN) treatments is also expected to continue, potentially even accelerating. This could bring the company to profitability by late 2025, according to the analyst's projections.
The optimism around the company's progress is based on the potential for steady catalysts that could enhance its financial outlook and market position. The price target increase to $18.00 per share reflects this positive sentiment.
The Overweight rating suggests that Barclays continues to view Travere Therapeutics as a favorable investment relative to its sector peers. The stock's performance will be closely watched by investors as the company approaches key milestones in its clinical and regulatory agenda.
In other recent news, Travere Therapeutics has experienced significant developments. The company has voluntarily paused enrollment in its peg HARMONY trial, expected to resume in 2026 due to necessary improvements in the manufacturing process.
Despite this, TD Cowen, Citi, H.C. Wainwright, and BofA Securities have all maintained their Buy ratings on Travere Therapeutics, with Citi reducing its price target to $19 from $23, while TD Cowen, H.C. Wainwright, and BofA Securities have set theirs at $15, $18, and $18 respectively.
Additionally, Travere's drug Filspari has received full FDA approval for the treatment of adult patients with primary Immunoglobulin A nephropathy, which led to a substantial increase in sales. The second quarter of 2024 saw Filspari sales reaching $27.1 million, a 37% increase over the first quarter.
Moreover, Travere Therapeutics reported a robust financial position, with $325.4 million in cash and securities, which is expected to support its operations into 2028. These are some of the recent highlights from the company, indicating a period of considerable progress despite the temporary pause in the peg HARMONY trial.
InvestingPro Insights
Travere Therapeutics' recent financial data and market performance align with Barclays' optimistic outlook. According to InvestingPro, the company has shown strong returns over various timeframes, with a 47.94% return in the last month and an impressive 81.71% return over the past six months. This upward trajectory supports the analyst's positive view on the stock.
The company's revenue growth is particularly noteworthy, with a 68.08% increase in the most recent quarter. This robust growth could be indicative of the momentum in IgA Nephropathy treatments that Barclays anticipates will continue.
However, InvestingPro Tips caution that Travere is quickly burning through cash and is not currently profitable. This aligns with the analyst's projection of profitability by late 2025, suggesting that investors should monitor the company's path to profitability closely.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Travere Therapeutics, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.