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On Monday, Rodman & Renshaw analyst Brandon Folkes increased the price target on Trevi Therapeutics (NASDAQ:TRVI) to $20.00, a significant rise from the previous $7.00, while reiterating a Buy rating on the stock. The adjustment follows Trevi Therapeutics’ announcement of promising results from its Phase 2a RIVER Trial of Haduvio, which is being developed to treat refractory chronic cough (RCC).
The trial data exceeded expectations, leading to the upward revision of the price target. Folkes emphasized that Trevi has effectively positioned its product for chronic cough in patients with idiopathic pulmonary fibrosis (IPF) as its lead indication. With a market capitalization of $534.4 million and a strong financial health score of GOOD according to InvestingPro, the company maintains robust liquidity with a current ratio of 7.38, indicating solid financial positioning for its clinical development programs. The company has also identified RCC as a second-or-third line therapy, a strategy that Folkes believes will maximize shareholder value for Trevi Therapeutics.
Folkes stated that the company’s strategic focus did not necessitate outperforming existing data from other clinical trials. However, the analyst pointed out that the results from the RIVER trial of Trevi’s Haduvio were more favorable than any data observed from GSK’s camlipixant, a P2X3 antagonist, for the treatment of RCC in any line of treatment.
The positive outcome of the RIVER trial has solidified Trevi Therapeutics’ position in the RCC treatment landscape. Folkes’ updated price target reflects the potential market impact and the value of Trevi’s Haduvio based on the recent clinical success. The company’s shares are likely to be influenced by this new development as investors and the market as a whole take note of the improved prospects for Trevi’s lead product candidate. Investors looking for deeper insights can access comprehensive analysis and 10+ additional ProTips through InvestingPro, with the next earnings announcement scheduled for March 19, 2025.
In other recent news, Trevi Therapeutics has reported positive results from its Phase 2a RIVER trial, which tested the efficacy of its drug Haduvio in treating refractory chronic cough (RCC). The trial demonstrated a 57% placebo-adjusted reduction in cough frequency, surpassing the initial goal of a 25% reduction and outperforming other treatments in development. Analysts from multiple firms have responded favorably to these results. Leerink Partners raised their price target for Trevi to $11, maintaining an Outperform rating, while Stifel kept a Buy rating with a $12 target, citing Haduvio’s potential to treat a previously underserved patient population.
Raymond (NSE:RYMD) James upgraded Trevi’s stock to Strong Buy, raising the price target to $29, highlighting Haduvio’s dual mechanism of action as a distinguishing feature. Needham also increased their price target to $25, emphasizing the substantial market opportunity in the U.S. for RCC, which affects millions of individuals. The success of the RIVER trial positions Haduvio as a potential leader in the RCC therapeutic space, especially as there are currently no FDA-approved treatments for this condition. Trevi plans to discuss the next steps with the FDA and aims to initiate further studies based on the agency’s guidance. These developments have drawn significant attention from investors, reflecting confidence in the future potential of Haduvio.
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