UPDATE: JP Morgan Upgrades Orexigen Therapeutics to Overweight Post Belviq FDA Approval

JP Morgan increases its rating on Orexigen Therapeutics

from Equal-weight to Overweight, but leaves the price target of $10 unchanged. JP Morgan says, "We believe FDA approval of Belviq (lorcaserin) has positive implications for the entire obesity space. …[P]erhaps the most interesting investment opportunity (or at least the most meaningful change in opinion) to emerge from this landmark development is OREX, which we are upgrading to OW and establishing a price target of $10. While the company's lead asset, Contrave, certainly appears to have a longer path to market, we are confident that it ultimately gets there and believe the relative valuation gap vs. ARNA and VVUS is simply too great to ignore." OREX closed at $4.92 on Wednesday.