Horizon Pharma PLC (NASDAQ:HZNP) announced this morning plans to acquire Raptor Pharmaceutical (NASDAQ:RPTP) for $800 million in cash, sending shares shooting up almost 10%. The deal will offer HZNP access to Procysbi, a drug designed to treat nephropathic cystinosis with duration through 2014, along with Quinsair, an aerosolized form of levofloxacin with duration until 2029.

In light of this acquisition, Cowen analyst Ken Cacciatore reiterates an Outperform rating on shares of HZNP with a $42 price target, which represents just under a 126% increase from where the stock is currently trading.

Cacciatore foresees the deal to close by the end of this year, and forecasts net sales, largely sparked by Procysbi, to hit $150MM in 2017 and to garner $10.00 per share for 2017 earnings, before gradually reaching $0.50 by 2019. The analyst expects the transaction to be NPV positive.

From Cacciatore’s perspective when assessing the transaction in the “[…] broader context of Horizon’s evolution, we believe this transaction makes good strategic sense, is nicely value creating, and provides enhanced and durable diversification.”

“We believe the Raptor offer makes strategic and financial sense, and reinforces Horizon’s clear long-term strategy. Importantly, Horizon remains in a position to continue to move upstream to more differentiated, more profitable, and longer duration assets. The valuation remains very reasonable given this management’s likely ability to create additional value,” the analyst concludes.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, four-star analyst Ken Cacciatore is ranked #788 out of 4,124 analysts. Cacciatore has a 48% success rate and yields 8.7% in his annual returns. When recommending HZNP, Cacciatore earns 4.1% in average profits on the stock.

TipRanks analytics demonstrate HZNP as a Strong Buy. Based on 11 analysts polled in the last 3 months, 9 rate a Buy on HZNP, while 2 maintain a Hold. The consensus price target stands at $31.00, marking a nearly 67% upside from where the shares last closed.