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On Thursday, Stifel analysts increased their price target on Trevi Therapeutics (NASDAQ:TRVI) shares to $12.00, up from the previous $8.00, while reiterating a Buy rating on the stock. The revision comes as Trevi Therapeutics nears the announcement of Phase 2a RIVER Proof of Concept (PoC) results for Haduvio, its mixed opioid product, in the treatment of refractory chronic cough (RCC). The stock has shown remarkable momentum, gaining nearly 14% in the past week and trading near its 52-week high of $4.68. According to InvestingPro data, analyst targets for TRVI range from $7 to $21, suggesting significant potential upside.
Trevi Therapeutics is poised for a potentially significant development with the upcoming readout from its Haduvio study. Analysts at Stifel have noted that the drug has demonstrated broad activity in treating idiopathic pulmonary fibrosis-related chronic cough (IPF-CC), a condition that has not responded to other treatments. The anticipation of positive results from the RIVER PoC study is underpinning the raised price target. With a market capitalization of $410 million and a strong financial health score according to InvestingPro, the company maintains a solid balance sheet with more cash than debt, though it’s not yet profitable.
Haduvio’s efficacy is being assessed across a spectrum of moderate to severe cough due to its dual mechanism of action, targeting both peripheral and central pathways. The success of Haduvio in RCC could pave the way for its use in a wider patient population, especially considering the limited effectiveness of P2X3 antagonists in treating moderate cases.
Stifel’s updated valuation reflects several potential outcomes for Trevi Therapeutics’ shares, considering the level of efficacy observed in the upcoming study. The analysts suggest that if Haduvio’s activity is confirmed in a broader patient group, it could significantly enhance the strategic value of Trevi Therapeutics.
The prospect of Haduvio serving as a primary treatment for one of the most challenging symptoms of IPF-CC, coupled with its potential as a blockbuster in the RCC market, has led to increased strategic interest in Trevi Therapeutics. The raised price target to $12.00 is indicative of Stifel’s positive outlook for the company’s stock. While the stock has delivered an impressive 67% return over the past year, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors can access 12+ additional ProTips and comprehensive analysis through InvestingPro’s detailed research report.
In other recent news, Travere Therapeutics announced plans to submit a supplemental New Drug Application (sNDA) for FILSPARI® for treating focal segmental glomerulosclerosis (FSGS) by the end of the first quarter of 2025. This submission follows a Type C meeting with the FDA and is based on data from Phase 3 DUPLEX and Phase 2 DUET studies. If approved, FILSPARI could become the first treatment specifically indicated for FSGS, a condition affecting over 40,000 individuals in the U.S. Meanwhile, Trevi Therapeutics has seen a series of positive developments, including an increased price target from B. Riley to $11.00 while maintaining a Buy rating. This follows successful updates in their Phase IIb CORAL study for Haduvio, which is targeting chronic cough and idiopathic pulmonary fibrosis. Additionally, Trevi has priced a $50 million stock offering at $4.00 per share, which is expected to support further clinical trials. Oppenheimer also reaffirmed an Outperform rating for Trevi, maintaining a $9.00 price target, reflecting confidence in Haduvio’s potential. These recent developments highlight significant progress and strategic moves by both companies in advancing their respective treatment candidates.
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