XOMA Shares Spike Higher Following Wedbush Price Target Increase

Shares of XOMA Corp XOMA closed up 5 percent on Monday, after Wedbush analyst Liana Moussatos, Ph.D., raised her price target on the stock from $14 to $17.

According to a report issued Monday, the analyst sees the Xoma 358 proof-of-clinical efficacy with good eyes, as it reduces pipeline risk. "It's No Longer Just About Gevokizumab," the firm states, reiterating an Outperform rating on the stock.

Webush said it believes "Xoma 358 has the potential to be a novel treatment for hyperinsulinemic hypoglycemia and related conditions. Persistently high levels of insulin can result in abnormally low glucose levels, which can result in neurological damage and death. Given Xoma 358's novel mechanism of action and apparently clean safety profile in healthy volunteers." The firm thinks it has potential as a treatment for hyperinsulinism hypoglycemia in both children and adults.

On Wednesday, Xoma will hold its fourth quarter 2014 financial call. The firm expects EPS to come in at a loss of ($0.12) for the quarter, and ($0.39) for the full year. Revenues are projected at $11.7 million for the fourth quarter, and $26.3 million for the full year.