NEW YORK (TheStreet) -- Shares of AVEO Pharmaceuticals (AVEO) - Get Report are up 8% to $1.62 on heavy volume in midday trading Monday after an analyst at RBC Capital upgraded the biopharmaceutical company to "sector perform" from "underperform" this morning.
The firm also upped its price target to $3 from $2, saying AVEO has made progress in restructuring, outlining its biomarker strategy, showing an ability to partner, as well as finding a potential approval path in Europe for the cancer drug tivozanib.
On Friday, AVEO posted a narrower-than-expected fourth quarter 2014 loss and reported potentially promising results from a mid-stage study of tivozanib in colon cancer. Overall, tivozanib did not slow the progression of colon cancer any more than patients treated with Roche's (RHHBY) Avastin. However, in a subset of patients with a specific mutation in their colon cancer, tivozanib may have outperformed Avastin.
The company reported a full-year loss of 78 cents per share, narrower than the year-ago loss of $1.94 per share.
About 4.61 million shares of AVEO have exchanged hands as of 12:25 p.m. ET today, compared to its average trading volume of about 1.24 million shares a day.
AVEO Pharmaceuticals is a cancer therapeutics company discovering, developing and commercializing targeted cancer therapies.
Separately, TheStreet Ratings team rates AVEO PHARMACEUTICALS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AVEO PHARMACEUTICALS INC (AVEO) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself."