Cantor Fitzgerald maintains overweight on Travere Therapeutics stock

Published 16/05/2025, 12:28
Cantor Fitzgerald maintains overweight on Travere Therapeutics stock

Friday, May 16, 2025 - Analysts at Cantor Fitzgerald have reiterated an Overweight rating on shares of Travere Therapeutics (NASDAQ:TVTX), maintaining a positive stance despite acknowledging the challenges ahead. The firm’s analyst noted that investor sentiment has been notably bullish on TVTX over the past month, with the stock delivering an impressive 216% return over the past year and trading near $21.15. According to InvestingPro data, six analysts have recently revised their earnings expectations upward for the upcoming period, though the company is not expected to be profitable this year.

The review process for Focal Segmental Glomerulosclerosis (FSGS) was anticipated to be straightforward, but the requirement for a cardio-renal Advisory Committee (Adcom) meeting introduces a layer of uncertainty, particularly given the current unpredictability with the FDA. Despite the potential for a delayed product launch, Cantor Fitzgerald believes the impact on Travere’s valuation is minimal. The company maintains a strong financial position with a current ratio of 2.05, indicating liquid assets exceed short-term obligations.

The analyst’s commentary reflects a broad investor optimism for Travere’s prospects in treating FSGS, a disease that affects the kidney’s filtering units. While the upcoming Adcom is acknowledged as a challenging hurdle, the long-term outlook remains unchanged in the eyes of the firm. The valuation of Travere Therapeutics remains steady at $35 per share, with analyst targets ranging from $22 to $47. InvestingPro analysis suggests the stock is currently trading slightly above its Fair Value, with revenue growth forecasted at 72% for FY2025. Get access to the complete financial health analysis and 8 additional ProTips with an InvestingPro subscription.

Travere Therapeutics specializes in therapies for rare diseases, and its progress in developing a treatment for FSGS has been closely watched by investors. The reiterated Overweight rating suggests that, according to Cantor Fitzgerald, the stock still represents a good investment opportunity relative to the risks involved.

The market will continue to monitor the developments surrounding Travere’s FSGS treatment, including the outcomes of the upcoming cardio-renal Adcom. In the meantime, the analyst’s reiteration of the Overweight rating and the maintained price target serve as a current assessment of the stock’s potential performance.

In other recent news, Travere Therapeutics reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of -$0.19, better than the forecasted -$0.55. The company also exceeded revenue projections, posting $81.7 million against an expected $78.05 million. The strong performance was driven by significant growth in sales of FILSPARI, which achieved net sales of $55.9 million, marking a 182% increase compared to the previous year. In another development, the U.S. Food and Drug Administration (FDA) accepted Travere’s supplemental New Drug Application (sNDA) for FILSPARI for the treatment of focal segmental glomerulosclerosis (FSGS), setting a review date of January 13, 2026. The FDA plans to hold an advisory committee meeting to discuss the application, which could make FILSPARI the first approved treatment for FSGS. Citi analyst Carly Kenselaar reiterated a Buy rating and a $35.00 price target on Travere stock, maintaining confidence in the drug’s prospects despite the standard review timeline. These developments follow the company’s efforts to expand treatment options for rare kidney disorders, with the potential FDA approval for FSGS being a significant milestone.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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