Roth Capital healthcare analyst Ed Arce is out today with some bullish thoughts on Cempra (NASDAQ:CEMP), initiating shares with a Buy rating and a $35 price target, which implies an upside of 51% from current levels.

Arce wrote, “Our positive thesis is driven by our view that 1) Solithromycin could reach peak sales of about $2 billion as it becomes the new SOC for both communityacquired bacterial pneumonia (CABP) and gonorrhea, 2) additional indications are likely given solithromycin’s broad-spectrum coverage and excellent safety profile, and 3) continued strong strategic interest in the antibiotics space makes a takeout in 2016 a distinct possibility.”

The analyst added, “We believe solithromycin has the safety profile and pharmacoeconomic benefits (via the IV-to-oral switch) that will be viewed as highly attractive by hospital P&T committees and attending physicians alike, even at the substantially higher “hospital pricing”.”

Bottom line, “We see significant upside for CEMP investors, driven by the blockbuster opportunity of solithromycin.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ed Arce has a total average return of 30.1% and a 58.7% success rate. Arce is ranked #91 out of 3429 analysts.