Brean Murray upgraded Adolor (ADLR
) to strong buy from accumulate, citing expectations for positive results from trials of the company's new treatment for obstructive bowel disease.
Analyst Jonathan Aschoff notes very clean Phase 2 trial results presented thus far in 522 patients who used the treatment. He thinks regulatory approval of the treatment would be material to the company's profitability, given factors such as the appeal of an oral medication for obstructive bowel disease. He says shares have drifted several dollars lower over the past two months, but he believes significant upside potential exists in them. He has $34 stock price target.