Cantor Fitzgerald stays bullish on Travere Therapeutics stock

Published 03/04/2025, 13:08
Cantor Fitzgerald stays bullish on Travere Therapeutics stock

On Thursday, Cantor Fitzgerald maintained an Overweight rating on Travere Therapeutics (NASDAQ:TVTX) shares, with a focus on the potential approval and market uptake of their drug candidate Filspari. The firm expressed a strong positive outlook for the drug’s prospects in treating FSGS (Focal Segmental Glomerulosclerosis), a rare kidney disease. According to InvestingPro data, TVTX has demonstrated remarkable momentum with a 157% return over the past year, despite a recent 12% pullback last week. The stock currently trades near $18, with analyst targets ranging from $22 to $47.

The analyst from Cantor Fitzgerald highlighted that the recent performance of Travere’s stock suggests some market anticipation of regulatory flexibility in FSGS. Nonetheless, they believe that the full market potential, particularly the swift adoption and peak sales opportunity of Filspari in FSGS, along with significant operational leverage, are still undervalued by investors. InvestingPro analysis reveals strong revenue growth of 60.5% in the last twelve months, with analysts projecting 73% growth for FY2025. For deeper insights into TVTX’s valuation and growth metrics, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

According to Cantor Fitzgerald’s analysis, based on a survey of physicians, there is an expectation of rapid uptake of Filspari upon its approval for FSGS treatment. Furthermore, the firm projects strong growth for Filspari in 2025, assuming full approval for another kidney condition, IgAN (IgA Nephropathy).

The long-term outlook for Filspari also appears favorable, with physician estimates suggesting a minimal impact from B-cell modulator drugs on Filspari’s market share. This contrasts with other estimates that forecast a significant slowdown due to these competing treatments. Cantor Fitzgerald’s forecasts for Filspari’s performance in the U.S. market from 2026 to 2030 are notably higher—by 50-75%—than the consensus, which is a testament to their confidence in the drug’s success for both FSGS and IgAN indications.

In other recent news, Travere Therapeutics reported its fourth-quarter 2024 financial results, surpassing analyst expectations with an earnings per share of -$0.47, better than the forecasted -$0.64. The company also exceeded revenue projections, posting $74.79 million compared to the expected $71.08 million. Travere’s net product sales for the quarter reached $73.5 million, marking an 80% year-over-year increase, primarily driven by its drug VILSPARI. Additionally, Travere has submitted a supplemental New Drug Application to the FDA for FILSPARI, aiming for approval as a treatment for focal segmental glomerulosclerosis (FSGS).

In regulatory developments, the FDA recently removed the requirement for REMS monitoring for embryo-fetal toxicity, and Travere plans to seek an amendment to modify liver monitoring. Analyst Carly Kenselaar from Citi raised the price target for Travere Therapeutics to $35, maintaining a Buy rating, citing optimism about FILSPARI’s potential approval for FSGS in late 2025. Kenselaar also highlighted the anticipated easing of REMS requirements for IgA nephropathy, which could accelerate the drug’s adoption. These developments underscore Travere’s strategic focus on expanding its market presence and achieving pivotal regulatory milestones.

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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