UPDATE: Duncan-Williams Color on Salix Pharmaceuticals Upgrade

Duncan-Williams, which

shares of Salix Pharmaceuticals

, is providing some color on the stock. “We use DCF analysis (11.5% WACC, down from 12.5% previously, and a 1% terminal growth rate) to arrive at our price target,” Duncan-Williams writes. “We believe the IBS situation is de-risked and continue to appreciate the growing Xifaxan portfolio and potential for M&A. Salix is currently in discussions with Alfa-Wassermann on a new formulation of Xifaxan for Crohn's disease which could drive additional value.” Salix Pharmaceuticals closed Friday at $39.37.