Piper Jaffray analyst, Matt O’Brien, upgrades his rating for Wright Medical Group Inc (NASDAQ:WMGI) after ending a “long spell on the sidelines” of his coverage on the stock.

The analyst explains, “Although litigation risk remains, the likelihood of a massive, near-term payout is modest, in our view. The recent convertible offering should be the last capital raise the company needs and allow it to more aggressively negotiate a potential settlement in its hip lawsuit.”

Further, the analyst maintains that the fundamental performance of the company’s core business remains healthy. O’Brien also sees potential for extended profile growth “as it sheds the legacy Tornier hip and knee business in a few months.”

The analyst issues a price target of $23.00 for WMGI.

According to TipRanks, the consensus price target for WMGI is $25.69, marking a 25.19% upside from current levels. 100% of analysts issue a Buy rating for the stock.