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NEW YORK (TheStreet) -- RBC Capital Markets upgraded Zafgen (ZFGN) - Get Zafgen, Inc. Report to "outperform" from "sector perform" and raised its price target to $21 from $7.

The Boston-based biopharmaceutical company focuses on the development of therapeutics for patients suffering from obesity and obesity-related disorders.

The upgrade comes after yesterday's positive results of Zafgen's beloranib drug, which is used to treat obesity and complex metabolic disorders.

"Despite the obvious safety overhang of thrombotic events, we believe that the strength of the efficacy data presented today, together with the appropriate risk mitigation strategy, facilitated by the unmet medical need in PWS, can lead to the lifting of the clinical hold, re-opening a path towards beloranib's approval," the firm said in an analyst note.

Last month, the drug was put on complete clinical hold following the death of two patients.

The company's stock skyrocketed on Wednesday on the results.

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Shares of Zafgen are down by 1.2% to $9.92 on heavy trading volume early Thursday afternoon.

About 9.15 million of the company's shares have been traded today, well above its average of 1.58 million shares per day.

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