BTIG sets $55 target on Tvardi Therapeutics stock with Buy rating

On Thursday, BTIG analyst Julian Harrison initiated coverage on Tvardi Therapeutics Inc (NASDAQ: TVRD), assigning a Buy rating and setting a price target of $55.00. Currently trading at $26.35, the stock has shown remarkable momentum with a 44% gain over the past six months, according to InvestingPro data. The platform’s analysis indicates the stock is in overbought territory, with several additional insights available to subscribers. Harrison highlighted Tvardi’s leading position in the development of STAT3 inhibitors for the treatment of fibrotic diseases. STAT3, a target with a strong validation but previously considered undruggable, has been successfully targeted by Tvardi’s co-founder Dr. David Tweardy, who discovered a way to inhibit STAT3 without compromising safety. With a market capitalization of $82.22 million, Tvardi maintains an excellent financial health score of 4.42 according to InvestingPro’s comprehensive analysis.

Tvardi Therapeutics is focused on advancing their most developed project, TTI-101, as a potential breakthrough therapy in fibrosis. The company is currently enrolling for a Phase 2 trial in idiopathic pulmonary fibrosis (IPF), with top-line 12-week data expected in the second half of 2025. The IPF market, valued at approximately $5 billion, currently has treatments that only slow the progression of the disease, with high discontinuation rates. Tvardi’s TTI-101 aims to reverse the course of the disease, which would be a significant advancement in treatment.

The interim Phase 2 results have provided informative insights into TTI-101’s potential activity, according to Harrison’s analysis. These results suggest that TTI-101 may lead to positive changes in forced vital capacity (FVC), a measure rarely seen in untreated IPF patients or those under the current standard of care.

In addition to the developments in IPF, Tvardi Therapeutics is also expected to release Phase 1b/2 data in early 2026 for the treatment of hepatocellular carcinoma, a type of liver cancer where fibrosis is a key driver of functional decline. This represents another significant area of unmet medical need.

Harrison concluded that Tvardi Therapeutics’ stock is undervalued, considering the novel mechanism of action (MOA) of their therapy, the encouraging interim efficacy results, and the scarcity of similar approaches in the field. The initiation of coverage with a Buy rating and a $55 price target reflects BTIG’s positive outlook on the company’s prospects. This target significantly exceeds the current analyst consensus range of $39-$42. For deeper insights into Tvardi’s valuation and growth potential, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which provides comprehensive analysis of over 1,400 US stocks.

In other recent news, Cara Therapeutics (NASDAQ:TVRD) has announced a merger with Tvardi Therapeutics, with Tvardi becoming a wholly-owned subsidiary of Cara. The merger, which aims to leverage Tvardi’s therapeutic approach targeting STAT3, was approved by Cara’s stockholders with a significant majority. In line with this merger, Cara has also announced a 1-for-3 reverse stock split, reducing its outstanding common stock from approximately 4.6 million to about 1.5 million shares. The merger and reverse stock split are part of Cara’s strategic efforts to enhance shareholder value and expand its pipeline.

Tvardi Therapeutics is advancing its lead candidate, TTI-101, with potential peak sales in idiopathic pulmonary fibrosis (IPF) projected at $2.8 billion by 2039. Lucid (NASDAQ:LCID) Capital Markets has initiated coverage on Tvardi with a Buy rating and a price target of $42, highlighting TTI-101’s potential in both IPF and metastatic hepatocellular carcinoma (HCC). Additionally, Tvardi is progressing with TTI-109 towards an Investigational New Drug application later this year. Cara’s board will undergo changes post-merger, with Tvardi designating five of the seven directors.

Stockholders have been advised to review supplemental disclosures related to the merger, which is subject to customary closing conditions. The combined entity is expected to have approximately 9.4 million outstanding shares of common stock following the merger’s completion.

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