Travere Therapeutics (TVTX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Mohit Bansal from Wells Fargo maintained a Buy rating on the stock and has a $27.00 price target.
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Mohit Bansal has given his Buy rating due to a combination of factors surrounding Travere Therapeutics’ potential in the FSGS market. Despite the standard review timeline and the FDA’s decision to hold an Advisory Committee (AdCom) meeting, Bansal perceives these as necessary steps for the first approval in FSGS, particularly given the shift to proteinuria as an approval endpoint. The involvement of expert discussions is seen as a positive move to validate the new endpoint, which could set a precedent for future approvals in the field.
Furthermore, Bansal’s valuation model already anticipates a 2026 launch for FSGS, with a conservative 60% probability of success based on strong data from the Phase 3 DUPLEX study. The potential for large upside with FSGS approval is significant, given the absence of approved treatments and the estimated peak sales of approximately $900 million in the US. Additionally, Travere’s competitors are notably behind in their development timelines, which enhances the attractiveness of the stock.
Bansal covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Bristol-Myers Squibb, and Gilead Sciences. According to TipRanks, Bansal has an average return of 3.3% and a 50.33% success rate on recommended stocks.