La Jolla Pharmaceutical Company (NASDAQ:LJPC) investors are overwhelmingly excited today after the drug maker reported compelling results from a phase 3 trial of its hypotension treatment. La Jolla shares reacted to the news, rising over 75% in Monday’s trading session.

That said, Cowen analyst Phil Nadeau believes the shares have more upside from the current price, raising his price target for LJPC to $55.00 (from $40.00), while reiterating an Outperform rating on the stock.

Nadeau noted, “We project $480MM in LJPC-501 sales in 2021, driving La Jolla to profitability. As we think this morning’s data should support FDA approval of LJPC-501, we view this as a key de-risking event for La Jolla. We have decreased the discount rate in our DCF from 15% to 11%, which has increased our DCF-based price target from $40 to $55.”

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Phil Nadeau has a yearly average return of 3.2% and a 47.5% success rate. Nadeau has a 18.2% average return when recommending LJPC, and is ranked #1350 out of 4501 analysts.

As of this writing, all the 4 analysts polled in the past 12 months rate La Jolla Pharmaceutical stock a Buy. With a return potential of 17%, the stock’s consensus target price stands at $41.75.

LJPC Chart