Shares of MannKind Corporation (NASDAQ:MNKD) are up nearly 3% in Friday trading session, as the inhaled insulin drug maker gets a vote of confidence from Maxim analyst Jason Kolbert. The analyst initiated coverage on MNKD with a Buy rating and price target of $4.00, which represents a potential upside of 245% from where the stock is currently trading. (To watch Kolber’s track record, click here)

To back up his bullish stance, Kolbert wrote, “Afrezza could shift the paradigm in diabetes management and with Afrezza now in the hands of a very capable management team, the focus is on execution. In the U.S., a conservative 5% share of the insulin market is a $350M opportunity. At the current ~$120M market capitalization there is significant upside, in our view.”

“We model Afrezza in adult diabetes, followed by launch for pediatrics in 2021. Given the challenges associated with the Sanofi launch and the early stage of the MannKind relaunch, a risk cut of 30% is applied to the adult diabetes model. A risk cut of 50% is applied to the pediatric diabetes model based on the early stage of development. A 30% discount is applied to the Free Cash Flow, Discounted EPS, and Sum-of-the-Parts models, which are equally weighted to derive a $4 price target,” the analyst added.

Overall, out of the 3 analysts polled in the past 12 months, 2 rate MannKind stock a Sell, while 1 rates the stock a Buy. With a return potential of 92%, the stock’s consensus target price stands at $2.27.