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On Wednesday, Raymond (NSE:RYMD) James reiterated its Strong Buy rating on Trevi Therapeutics (NASDAQ:TRVI), with a consistent price target of $29.00. The affirmation follows Trevi’s fourth-quarter 2024 earnings release. The stock has shown remarkable momentum, gaining over 89% in the past year and 59% year-to-date, according to InvestingPro data. Analysts at Raymond James have expressed continued confidence in the pharmaceutical company, now valued at $586 million, underpinned by the potential of its leading drug candidate, Haduvio.
Trevi Therapeutics’ prospects are buoyed by the drug’s strong performance in initial studies. The company maintains a strong financial position with more cash than debt and a healthy current ratio of 10.41, as revealed by InvestingPro analysis. Haduvio has shown promising results in a proof-of-concept study for idiopathic pulmonary fibrosis-related chronic cough (IPF-CC), signaling potential as a primary treatment in the broader chronic cough market. The analysts highlight three key factors for their optimistic stance: the robust efficacy signal from the IPF-CC study, the successful translation of these results to refractory chronic cough (RCC), and the lack of significant competition in the therapeutic space.
The company is currently gearing up for the Phase 2b CORAL study outcomes in IPF-CC, anticipated in the second quarter of 2025. The results are expected to be pivotal, potentially de-risking the drug’s development path for this indication. The impact of the readout is projected to be significant for the company’s share value.
In addition to the upcoming study results, Trevi plans to significantly engage with the medical community. The company has scheduled a major presence at the American Thoracic Society (ATS) 2025 conference in San Francisco this May, just days before its next earnings release on May 8th. At the event, Trevi is set to present new data from the RCC Phase 2a study. Furthermore, a panel of key opinion leaders (KOLs) will discuss both IPF-CC and RCC, potentially increasing visibility and interest in Haduvio’s development progress. For deeper insights into Trevi’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Trevi Therapeutics reported a net loss of $11.4 million for the fourth quarter of 2024, an increase from $7.8 million in the same period of 2023. Earnings per share slightly exceeded expectations at -0.11 compared to the forecast of -0.12. The company has confirmed that its cash reserves, bolstered by a recent $50 million offering, are expected to sustain operations into the second half of 2026. Analysts at Stifel and H.C. Wainwright have maintained their Buy ratings on Trevi Therapeutics, with price targets of $15 and $12.50, respectively, citing promising trial results for Haduvio in chronic cough conditions. The company is focusing on the development of Haduvio, particularly for idiopathic pulmonary fibrosis-associated chronic cough, with topline data from the CORAL Phase 2b trial expected in the second quarter of 2025. Positive outcomes from recent trials, including the Phase 2a RIVER study, have reduced the risk for future trial results, according to H.C. Wainwright. Trevi’s strategic focus includes leveraging its cash reserves to maximize the potential of Haduvio, potentially attracting strategic partnerships.
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