Jefferies Raises Price Target On Cubist Pharmaceuticals

In a research note released Monday, Jefferies analyst Eun K. Yang increased his price target on Cubist Pharmaceuticals CBSTfrom $87 to $88.

The increase in the price target was primarily based on the Food and Drug Administration's approval of Sivextro.

The analyst is expecting shares to appreciate as the company starts to release its drug. In addition, as two more antibiotics are launching this year, the firm is expecting Cubist to improve its operating/profit margins in 2015.

Current quarter earnings per share estimates stand at $0.10, while current year estimates are $0.42.

Shares of Cubist are down two percent Monday.