Struggling biotech stock Travere Therapeutics could be in for a significant turnaround, according to Citi. Analyst Carly Kenselaar upgraded the clinical-stage company to Buy/High Risk and raised her price target by $3 to $10, suggesting shares could rise nearly 59% over the next 12 months . Kenselaar’s new rating comes after some positive signals suggest the company is on track to receive full approval for its Filspari drug. Those signs include support from the U.S. Food and Drug Administration for an application for the first quarter of 2024, the analyst said. “Given that the stock is trading below cash, we expect the risk/reward to be quite positive upon a full approval decision, supporting our upgrade,” Kenselaar wrote in a note on Tuesday. “The agency’s support for a Q1 2024 filing suggests that Filspari is unlikely to be delisted, as some may have initially feared, and precludes the need for additional data pre-filing.” Shares are up nearly on the year Dropped 63%, with much of those losses attributed to late-stage trial data released in late September that showed Filspari failed to reach statistical significance in treating a rare kidney disease. This week, however, shares are surging after Travere announced Monday that the company plans to reduce its workforce by about 20% and focus its near-term resources on two of its ongoing programs, including the Filspari launch. The move would extend its liquidity path into 2028, the company said, which Kenselaar saw as a further catalyst for her increased price target. The stock rose 24.5% on Tuesday. Filspari is a prescription oral medicine that is aimed at lowering protein levels in the urine of adults with a kidney disease called primary immunoglobulin A nephropathy, or IgAN. Citi increased the probability adjustment for Filspari’s transition to full IgAN approval from 65% to 75%, Kenselaar wrote, citing the positive outcome of the pre-NDA meeting, which is generally a company’s last interaction with the FDA prior to a new drug application submission of their drug as well as strong feedback on Filspari from a former FDA expert.