UPDATE: Cantor Fitzgerald Upgrades Cubist Pharmaceuticals Following Data on New Drug

In a report published on Tuesday, Cantor Fitzgerald analyst Irina Rivkind upgraded the rating on Cubist Pharmaceuticals CBST from Sell to Hold and raised the price target from $40 to $49.

In the report, Rivkind commented that, "The next big catalyst is in 2H:13 upon the CXA-201 Phase III data release. We actually see some modest risk around the results given that Phase II data in cUTI were slightly numerically weaker than ceftazidime, and Phase II data in cIAI showed a similar trend versus meropenem. Cubist needs to generate positive data in both trials in not only the primary, but also the secondary endpoints to be able to assure attractive pharmacoeconomics and pricing in the U.S. and E.U. markets. While the stock should rally on any positive results, we do see more downside risk around this event given the positive expectations around the data and the critical nature of data quality."

Cubist Pharmaceuticals closed on Monday at $53.48