Morgan Stanley Upgrades Ocular Therapeutix To Overweight

On Wednesday, Morgan Stanley upgraded Ocular Therapeutix Inc.

from EW to OW ahead of news for their drug OTX-TP and the discovery of a viable pathway forward. Analysts at Morgan Stanley maintained their $15 price target for the company with an in-line industry view. Andrew Berens and Thomas Smith, analysts at Morgan Stanley, wrote, "We are upgrading OCUL...after management announced a viable pathway forward appears to have a much lower bar than expected by investors...we expect OCUL shares to react favorably to the news…" Analysts gave one key takeaway from Ocular's announcement that can drive the company's share price higher. 1. Higher probability of drug approval Morgan Stanley noted that the FDA gave Ocular permission to conduct a Phase 3 program for OTX-TP in glaucoma patients. With the drug in Phase III clinical trials, Ocular has a chance to prove the drug's safety and efficacy on humans, one of the last regulatory hurdles before the drug can be marketed and sold. If the drug proves to be successful, Ocular can achieve significant revenue growth and profitability while filling the market's demand for a drug that treats glaucoma. Currently, Ocular Therapeutics is trading at $9.09, up 45.21 percent.