On Friday, Piper Sandler adjusted its price target for Travere Therapeutics (NASDAQ:TVTX) shares, increasing it to $12.00 from the previous $11.00, while maintaining a Neutral rating on the stock.
The adjustment follows Travere's announcement of its latest quarterly results, which showed Filspari revenue reaching $27.1 million, marking a 37% increase from the previous quarter and surpassing expectations by approximately $2 million.
Despite the revenue beat, Travere's patient start forms showed minimal growth, with only a 2% increase quarter over quarter. In response to the current results, Piper Sandler has modestly raised its near-term estimates for the company.
The firm anticipates slow, yet steady growth for Travere over time, supported by upcoming events such as the updated KDIGO guidelines and the potential full FDA approval of Filspari, with a PDUFA date set for September 5, 2024.
Piper Sandler believes that these factors will contribute to Travere's continued growth. Nevertheless, the firm also notes that the market has likely already accounted for these positive developments in the stock's price.
The analyst suggests that a softening of the liver monitoring Risk Evaluation and Mitigation Strategy (REMS), which currently poses a significant burden for patients using Filspari, could have a more substantial impact on the drug's market uptake.
After reviewing FDA documents, Piper Sandler does not anticipate changes to the stringent liver monitoring requirements in the near future. The firm also expresses caution regarding Filspari's potential to become a foundational therapy for IgA nephropathy (IgAN), given the obstacles it faces. As a result, Piper Sandler prefers to remain neutral, setting the price target to $12 based on these considerations.
In other recent news, Travere Therapeutics has been a focal point for analysts, with firms such as Piper Sandler, William Blair, and Canaccord Genuity providing their insights.
William Blair, citing Filspari's market and regulatory challenges, held a market perform rating on the stock.
Canaccord Genuity, on the other hand, maintained a buy rating, increasing their price target to $18 from $15, highlighting the company's 35% growth in Filspari sales revenue.
In addition to these analyst reports, Travere's recent earnings call revealed a strong first quarter in 2024, with a 35% revenue growth over the previous quarter, largely driven by the successful commercial launch of FILSPARI in the US.
Among the recent developments, Travere's pegtibatinase program for homocystinuria (HCU) is progressing well, as reported in the earnings call. The company ended the quarter with $41.4 million in total revenue and expects its current operations to be supported into 2028 through cash balance, growth in FILSPARI sales, expense management, and milestone payments.
InvestingPro Insights
Travere Therapeutics has been navigating a challenging landscape, as reflected in the InvestingPro data and tips. With a market capitalization of $703.43 million, the company has shown a remarkable revenue growth of 69.52% over the last twelve months as of Q1 2024. Despite this, analysts have revised their earnings downwards for the upcoming period, indicating that the market may have concerns about the company's future profitability. Indeed, the company is not expected to be profitable this year, as it struggles with weak gross profit margins of -57.37% and an operating income margin of -268.65%.
On a positive note, Travere's liquid assets exceed its short-term obligations, suggesting a degree of financial stability in the near term. Additionally, the stock has experienced a strong return over the last three months, with a 50% increase. However, it's important to note that Travere does not pay a dividend, which may influence investment decisions for those seeking regular income. For investors considering Travere Therapeutics, these insights could be crucial in making informed decisions, and there are 11 additional InvestingPro Tips available for those looking for more in-depth analysis (https://www.investing.com/pro/TVTX).
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.