Investors in Catalyst Pharmaceuticals Inc (NASDAQ:CPRX) are having a great day. Shares of the biotech are up nearly 25% in the wake of analyst upgrade.

Piper Jaffray analyst Charles Duncan upgraded the stock from Neutral to Overweight, while raising the price target to $4.00 (from $1.00).

Duncan explained, “We caught up with Catalyst, and combined with ongoing diligence on lead candidate Firdapse, we now believe this program will soon be back on track and poised for 2017 value creation. Today we’re upgrading from N to OW and raising our PT to $4 based on reduced clinical and regulatory risk, as well as improved visibility on timeline to NDA re-submission. Specifically, we see reduced clinical risk for Firdapse’s lead indication in LEMS based on finalized design of the second Phase III set to begin this quarter. In addition, we believe regulatory risk has been mitigated by close interaction with the FDA on trial design. All told, we anticipate Phase III results and NDA re-submission in 2H17, representing two points of value creation through which the company is adequately funded. In advance of a capital-efficient, risk-mitigated Phase III LEMS trial start in 4Q16, we are buyers of CPRX.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Charles Duncan has a yearly average return of -7% and a 35% success rate. Duncan has a -58% average return when recommending CPRX, and is ranked #3950 out of 4193 analysts.

Out of the 3 analysts polled by TipRanks, 2 rate Catalyst Pharmaceutical stock a Buy, while 1 rates the stock a Hold. With a return potential of 66%, the stock’s consensus target price stands at $2.13.

Catalyst Pharmaceuticals, Inc. is a biopharmaceutical company. It focuses on development and commercialization of prescription drugs targeting rare (orphan) neuromuscular and neurological diseases, including Lambert-Eaton Myasthenic Syndrome (LEMS), infantile spasms, and Tourette’s disorder.