Last week, Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) excited investors with the news that its drug Trulance, a treatment approved in the indication of Chronic Idiopathic Constipation (CIC), has a supplemental New Drug Application (sNDA) that now has received FDA approval for the treatment of constipation-predominant irritable bowel syndrome (IBS-C).

Believing commercial progress is imminent for the biotech firm, Rodman & Renshaw analyst Ram Selvaraju reiterates a Buy rating on SGYP while listing a price target of $18, which represents an upside of approximately 342% compared to where the shares last closed.

Selvaraju trusts the drug maker is walking on a “promising” commercial road, especially considering “momentum” from new prescriptions and refill rates, which he predicts will meaningfully bolster by the close of the third quarter of this year.

Additionally, the analyst mentions the departure of Kunwar Shailubhai, Synergy’s Chief Scientific Officer, who initially invented plecanatide. However, this piece of information does not seem to trouble Selvaraju’s bullish mindset, with the analyst adding, “Synergy’s focus has now shifted to commercialization of plecanatide, and we do not expect the company to expend significant resources on early-stage drug discovery going forward.”

The analyst concludes, “We remain confident that Synergy should secure this key extension to the Trulance™ label in early 2018, and thereby should be able to compete on an equal footing across the board with its closest comparator, Linzess® (linaclotide), from Allergan plc (AGN; not rated) and Ironwood Pharmaceuticals (IRWD; not rated). We continue to anticipate that Trulance™ should be able to achieve a market-leading position in treatment of both chronic idiopathic constipation (CIC) and IBS-C in the coming years.”

According to TipRanks, a financial engine that measures and ranks analysts’ and bloggers’ performance, Ram Selvaraju is ranked #4495 out of #4567 analysts. Selvaraju has a 32% success rate and generates an annual yield of -8.7%. When recommending SGYP, the analyst earns a -1.7% average profit on the stock.

TipRanks analytics show SGYP as a Buy. Based on 6 analysts offering recommendations for this share, 5 issue a Buy and 1 recommends a Sell. The 12-month average price target stands at $12.40, making a nearly 205% upside from where the stock is currently trading.