UPDATE: Piper Jaffray Upgrades Questcor Pharmaceuticals Following Strong 2Q13 Report

In a report published Wednesday, Piper Jaffray analyst David Amsellem upgraded Questcor Pharmaceuticals (NASDAQ: QCOR) from Neutral to Overweight, and raised the price target from $41.00 to $74.00.

In the report, Piper Jaffray noted, “In the wake of a very strong 2Q13 for Questcor (non-GAAP diluted EPS was $1.35, well above the Street estimate of $1.00), we are upgrading the shares to Overweight from Neutral and raising our PT to $74 from $41. There is clear evidence of Acthar expansion in the rheumatology setting. This dynamic, coupled with prescription (Rx) stability (at a minimum) in other treatment settings where Acthar has been historically used (e.g., nephrotic syndrome (NS)) and the absence of evidence of any new restrictions from managed care justifies upward revisions to our estimates and P/E expansion in our view. With cash flows looking increasingly sustainable (and likely to grow) longer-term, we believe a P/E closer to the 2015 average of 14x for QCOR's brand specialty pharma peers is appropriate, particularly considering the complexities associated with the product that make generic competition a remote possibility.”

Questcor Pharmaceuticals closed on Tuesday at $51.91.