In a research note issued today, Wedbush analyst Liana Moussatos (TipRanks #1) reiterated an Outperform rating on Pacira (NASDAQ:PCRX) and slightly raised her price target to $123 (from $119), which represents a potential upside of 35% from where the stock is currently trading.

Moussatos noted, “Pacira preannounced Q4:14 EXPAREL sales of $59.0MM (+18% Q/Q) slightly beat our/consensus estimate of $58.9/$58.2MM. With double-digit Q/Q growth, it is apparent to us that the FDA warning letter issued in late September has not significantly impacted the growth of EXPAREL sales.”

The analyst continued, “Some investors were concerned that preliminary Q1:15 consensus EXPAREL sales of about $64.2MM are not achievable. However, QoQ sales growth for Q4:13 to Q1:14 was about $3.9MM (Q4:13 $30.5MM/Q1:14 $34.4MM) compared with about $5MM for Q1:15 over Q4:14 (preannounced Q4:14 of $59MM vs. Q1:15 preliminary consensus of $64.2MM). We believe even with the outstanding FDA Warning Letter, a $5MM QoQ increase is achievable based on continued growth seen in Q4:14.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Liana Moussatos has a total average return of 65.3% and a 71.6% success rate. Moussatos has a -9.4% average return when recommending PCRX, and is ranked #1 out of 3434 analysts.