Biotech stock Travere Therapeutics is trading at a deep discount: JPMorgan

Travere Therapeutics Inc (NASDAQ: TVTX) has been a disappointment for shareholders since early May but a JPMorgan analyst expects it to recover over the next 18 months.

Travere Therapeutics shares have a 65% upside

On Friday, Anupam Rama assumed coverage of the biotech stock with an “overweight” rating. His $26 price objective signals a whopping 65% upside from here.

The analyst recommends buying Travere Therapeutics shares for “Filspari” – its treatment for a rare kidney disease called immunoglobulin A nephropathy that received accelerated FDA approval earlier this year.

The biopharmaceutical company is expected to lose $1.15 a share in its currently financial quarter versus $1.05 per share a year ago.

Why else is he bullish on the biotech stock?

Anupam Rama is bullish on Travere Therapeutics shares also for “Pegtibatinase” that he dubbed a compelling product in his research note on Friday.

Pegtibatinase is treatment for a genetic metabolic disorder called Classical Homocystinuria and is currently awaiting regulatory feedback. According to the JPMorgan analyst:

All in all, he said a near 30% plunge in the biotech stock in less than three months warrants an investment. Travere Therapeutics is scheduled to report its second-quarter financial results in the first week of August.