In a research report published Friday, Roth Capital analyst Scott Henry upgraded shares of Depomed (NASDAQ:DEPO) from a Neutral to a Buy rating and raised his price target to $25, which implies an upside of 42% from current levels.

Henry explained, “We believe that the Nucynta transaction transforms DEPO into a leading pain company now with critical mass. DEPO paid full price for the Nucynta franchise (based on trailing revenues), but we expect upside from multiple “go forward” factors including 1) price increases, 2) higher sales effort, and 3) increased management focus.”

The analyst added, “Specialty pharma companies that focus on one therapeutic segment and that reach critical mass (think SLXP-Neutral in GI, FRX-NC in depression) tend to maximize asset values, in our opinion. We view DEPO as emerging within this model based on pain management.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Scott Henry has a total average return of 14.1% and a 46.8% success rate. Henry has a 75.1% average return when recommending DEPO, and is ranked #273 out of 3426 analysts.