Analysts with RBC Capital Markets have rated Salix Pharmaceuticals outperform in their first research note on the Raleigh company.
RBC initiated coverage with a target price of $53 for Salix shares. The stock is currently trading around $46 per share.
"While the company experienced some pipeline setbacks over the past two years, we believe these are already well reflected in the stock price," the analysts wrote.
Salix sells drugs to treat gastrointestinal ailments. Much of the RBC analysts optimism about the stock relates to their belief that revenue from Xifaxan, Salix's best selling drug, will grow significantly in the future.