UPDATE: Oppenheimer Upgrades Zogenix Following Zohydro Approval

In a report published Thursday, Oppenheimer analyst Akiva Felt upgraded Zogenix (NASDAQ: ZGNX) from Perform to Outperform and moved the price target to $5.00.

In the report, Oppenheimer wrote, "Zohydro's approval on 10/25 was a transformative event for Zogenix, in our view, and we are upgrading the shares to Outperform from Perform with a $5 price target, following a proprietary physician survey that we believe bodes well for the drug's use in chronic pain. With the financing overhang recently removed, we believe ZGNX shares are attractive from a risk/reward standpoint. Our NPV analysis yields a $5 valuation assuming only a 3.5% peak share of the ER/LA opioid market."

Zogenix closed on Wednesday at $2.72.