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Monday, Oppenheimer analysts raised the price target for Trevi Therapeutics stock (NASDAQ: NASDAQ:TRVI) to $23 from $20 while maintaining an Outperform rating, placing their target within the broader analyst range of $13 to $29. This adjustment follows a positive topline announcement from the company’s Phase 2b trial.
The analysts highlighted the company’s webcast, which included insights from key opinion leaders and detailed slides. These elements have strengthened the case for Haduvio, Trevi’s treatment aimed at addressing idiopathic pulmonary fibrosis (IPF) chronic cough. Currently, there are no approved treatment options for this condition, and other candidates have not met expectations.
A key point from the announcement was the placebo-like discontinuation rate across the active arms of the trial, addressing a significant concern among investors. Trevi Therapeutics plans to reveal the design for its Phase 3 trial later this year.
The analysts see the stock as undervalued, projecting a $1.5 billion revenue opportunity in the U.S. for this indication alone. They also noted the potential for development in refractory chronic cough and non-IPF interstitial lung disease. According to InvestingPro data, the company maintains strong financial health with a current ratio of 15.38 and more cash than debt on its balance sheet.
Today’s market reaction to the announcement reflects the typical trading dynamics observed in small-cap biotech stocks within the current market environment. With a market capitalization of $635 million, TRVI has demonstrated remarkable momentum, delivering a 153% return over the past year. For deeper insights into TRVI’s valuation and growth potential, InvestingPro offers comprehensive analysis and additional metrics in its detailed Research Report.
In other recent news, Trevi Therapeutics has announced positive topline results from its Phase 2b CORAL trial, which evaluated Haduvio for chronic cough in patients with idiopathic pulmonary fibrosis (IPF). The trial met its primary endpoint, showing significant reductions in cough frequency across all dose groups, with the 108 mg BID dose group experiencing a 60.2% reduction. The treatment was generally well-tolerated, with similar discontinuation rates due to adverse events in both the Haduvio and placebo groups. Trevi plans to engage with the FDA for an end-of-Phase 2 meeting and aims to initiate a Phase 3 program in 2026.
Additionally, Trevi Therapeutics has launched a $100 million stock offering, with an option for underwriters to purchase an additional $15 million in shares. This offering is being managed by several firms, including Morgan Stanley (NYSE:MS) and Leerink Partners. In terms of analyst updates, Raymond (NSE:RYMD) James has reiterated a Strong Buy rating on Trevi Therapeutics, following the promising results from the Phase 2b CORAL study. H.C. Wainwright has also initiated coverage with a Buy rating and a $21 price target, highlighting the potential of Haduvio in treating refractory chronic cough and IPF-related chronic cough.
The firm expressed optimism about Haduvio’s revenue potential, estimating significant earnings from both RCC and IPF-CC indications. Analysts have noted the strong performance of Haduvio in clinical trials, which positions Trevi favorably in the biopharmaceutical industry. The company’s continued advancements in clinical trials and forthcoming data readouts are pivotal in shaping these positive assessments.
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