Ahead Of The Bell: Pharmasset

NEW YORK (AP) — A Robert W. Baird analyst upgraded shares of drug developer Pharmasset Inc. on Tuesday, citing the chances for a successful outcome from upcoming midstage study results on the developing hepatitis C treatment R7128.

Analyst Thomas J. Russo upgraded the stock to "Outperform" from "Neutral" and raised his price target to $30 from $16 for the Princeton, N.J.-based company. He cited discussions with physicians.

"Our physician checks lead us to conclude that no news is indeed good news and that the key safety review for R7128 around late October is tracking to be a positive event," he said, in a note to investors. "This tilts our view of reward/risk for the stock to positive."

He boosted the target price citing a high probability of success for the drug candidate, citing a conversation with "three hepatology specialists close" to the program.

Based on those limited conversations, he said, there have been no concerning safety issues and enrollment in the study has been rapid.