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On Friday, BofA Securities increased its price target on shares of Travere Therapeutics (NASDAQ:TVTX) to $19.00, up from the previous $18.00. The firm also reaffirmed its Buy rating on the stock. This adjustment reflects the analyst's positive outlook on the company's prospects.
The analyst's commentary highlighted Broadcom (NASDAQ:AVGO)'s solid performance, noting that it met street expectations. A significant point from the earnings call was the raised guidance for AI revenue by $1 billion for the upcoming quarter, totaling $12 billion. This indicates a strong ongoing demand in the AI sector.
Additionally, the analyst observed that non-AI related semiconductor revenue for Broadcom seems to have reached a turning point last quarter, as bookings saw an approximate 20% sequential increase. This suggests a recovery in semiconductor sales unrelated to AI.
On the software front, Broadcom is reportedly making substantial progress with VMware (NYSE:VMW), with expectations to grow revenues while reducing operating expenses and increasing financial leverage. The analyst pointed out that Broadcom has traditionally achieved operating margins of around 70% or slightly higher for its software businesses, and anticipates VMware will align with this trend by next year.
The overall assessment from BofA Securities is one of confidence in Broadcom's strategic execution and its position within its various lines of business. The firm's reiterated Overweight (OW) rating underscores this positive outlook.
In other recent news, Travere Therapeutics has reported substantial growth in the second quarter of 2024, primarily driven by the increasing demand for FILSPARI, its therapy for IgA nephropathy. The company has surpassed launch benchmarks, demonstrating robust revenue growth and is anticipating full approval of FILSPARI within the next month.
Travere is in a solid financial position, with $325.4 million in cash and securities, and is confident in its ability to support operations into 2028. The company is also preparing for a broader label to increase the addressable patient population.
FILSPARI sales reached $27.1 million in Q2, a 37% increase over Q1. Approximately 2,400 nephrologists are REMS certified, exceeding benchmarks for total prescribers. Access and reimbursement for FILSPARI are strong, with 96% of U.S. lives having a pathway to reimbursement. The company attributes the increase in FILSPARI sales to efficiencies in the fulfillment process and high compliance and persistence rates among patients.
These are recent developments for Travere Therapeutics and highlight a period of significant progress, particularly with the successful launch of FILSPARI. The financials for the second quarter show a promising trend, with a reduction in operating expenses and a strong balance sheet, positioning the company well for continued growth.
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