UPDATE: Oppenheimer Assumes Coverage on Questcor Pharmaceuticals with Outperform Rating, $57 PT on Compelling Upside Potential

In a report published Friday, Oppenheimer analyst Akiva Felt assumed coverage on Questcor Pharmaceuticals QCOR, upgraded the rating from Perform to Outperform, and a $57.00 price target. In the report, Oppenheimer noted, “We are assuming coverage of Questcor Pharmaceuticals and raising our rating to Outperform from Perform, with a 12-18-month price target of $57. We believe QCOR's lead asset Acthar, actively marketed for several indications, remains an attractive long-term growth opportunity. We estimate a top-line CAGR of ~22% through 2016. QCOR currently trades at 10x our 2014E EPS, a ~54% discount to the peer group, reflecting lingering concerns around Acthar reimbursement and potential competition. Although these concerns are warranted, we believe they are disproportionately reflected in QCOR shares. In our view, the upside potential from continued topline growth and eventual realignment of multiples presents a compelling opportunity despite elevated risks.” Questcor Pharmaceuticals closed on Thursday at $45.79.