UPDATE: Auriga Upgrades Salix Pharmaceuticals to Buy

Auriga raises its rating on Salix Pharmaceuticals (NASDAQ: SLXP) to Buy and raises its price target to $54 on more robust growth of Xifaxan.

Auriga notes, "Xifaxan growth picked up significantly during the second half of 2011 primarily due to seasonality. Management's 2012 guidance appears conservative and we believe there is a high likelihood that Salix will outperform. Two near term catalysts, one for the potential approval of sub-Q formulation of Relistor and the other for the approval of HIV diarrhea drug Crofelemer, may provide additional upside. Also, the business is likely to gain significant leverage in 2013 with estimated EPS of $3.53. We are upgrading the shares to BUY with a $55 PT."

SLXP closed at $46.14 a share yesterday.