Stifel maintains Trevi Therapeutics stock Buy rating, $15 target

Published 23/04/2025, 15:54
Stifel maintains Trevi Therapeutics stock Buy rating, $15 target

On Wednesday, Stifel analysts maintained their Buy rating and $15.00 price target for Trevi Therapeutics (NASDAQ:TRVI), expressing confidence in the company’s upcoming Phase 2b CORAL study results for its drug Haduvio. The stock has shown remarkable momentum, gaining 89.1% over the past six months according to InvestingPro data, with analyst targets ranging from $11 to $29. The drug, intended for idiopathic pulmonary fibrosis (IPF) patients with chronic cough, has shown promise in earlier trials and is backed by a mechanism of action that combines kappa agonist and mu antagonist effects, which may be particularly effective for chronic cough conditions.

Trevi Therapeutics’ management, including CEO Jennifer Good and CCO Farrell Simon, have discussed the strategic positioning of Haduvio ahead of the crucial study readout. Stifel’s analysts highlighted the drug’s potential, citing positive developments and previous Phase 2a proof of concept (PoC) results in both RCC and IPF that support Haduvio’s suitability for treating chronic cough conditions with underlying hypersensitivity.

The upcoming Phase 2b CORAL readout in IPF-related chronic cough (IPF-CC) is particularly significant, with Stifel analysts reassured by an SSRE (sample size re-estimation) analysis that suggests the study is adequately powered to detect a 36% effect size with 80% power. With a strong financial health score and a current ratio of 10.41, InvestingPro data shows Trevi is well-positioned to execute its clinical programs, maintaining more cash than debt on its balance sheet. A positive outcome from the CORAL study is expected to attract attention from potential strategic partners, although Trevi Therapeutics has a plan to independently execute its strategy, prioritizing IPF with non-IPF interstitial lung diseases (ILDs) and RCC as additional targets for supplemental new drug applications (sNDAs). The combined total addressable market (TAM) for these indications is estimated to be around $35 billion.

Trevi’s management has outlined a thoughtful path forward, focusing on delivering treatment options for IPF as a primary objective. The company is also considering other non-IPF ILDs and RCC as viable pathways for expanding Haduvio’s indications, which could significantly increase its market potential. The anticipation of the Phase 2b CORAL study results has positioned Trevi Therapeutics at a pivotal moment, with the potential to make a substantial impact on the treatment landscape for patients with chronic cough due to IPF and other hypersensitivity-related conditions. Investors should note that Trevi’s next earnings report is scheduled for May 8, 2025. For deeper insights into Trevi’s valuation and growth potential, including 12 additional ProTips and comprehensive financial analysis, visit 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 the previous year. The company’s earnings per share (EPS) of -0.11 slightly outperformed the forecasted -0.12. Analysts have maintained their ratings on Trevi, with Raymond (NSE:RYMD) James reiterating a Strong Buy and a $29 price target, Stifel maintaining a Buy with a $15 target, and H.C. Wainwright reaffirming a Buy with a $12.50 target. These ratings reflect confidence in Trevi’s lead drug candidate, Haduvio, which has shown promising results in recent trials for chronic cough conditions.

Trevi is concentrating its efforts on the Phase 2b CORAL study outcomes for idiopathic pulmonary fibrosis-associated chronic cough (IPF-CC), with results expected in the second quarter of 2025. The company is also preparing to present new data from its RCC Phase 2a study at the American Thoracic Society 2025 conference. Trevi’s cash reserves of $107.6 million are projected to sustain operations into the second half of 2026, providing financial stability as the company advances its clinical programs. Analysts from Stifel and H.C. Wainwright have highlighted the potential for strategic partnerships and the reduced risk for upcoming study results, further supporting Trevi’s development path.

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