Why XOMA (XOMA) Stock Is Surging Today

NEW YORK (TheStreet) -- XOMA Corporation (XOMA) shares are up 18.85% to $4.54 on Tuesday after being upgraded to "buy" from "hold" by analysts at MLV & Co.

The upgrade follows the company's announcement that it was finalizing plans for its gevokizumab Phase 3 program.

Must Read: Warren Buffett's 10 Favorite Growth Stocks 

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. 

The program was finalized following a meeting with regulators from the FDA.

"Our call is based on valuation and optimism around positive upcoming data from the P3 trial for lead asset gevokizumab (gevo) expected sometime mid-year. On positive data, we're expecting ~15-20% of upside to the stock, with potential for additional upside in the form of two other P3 readouts for gevo expected by year-end," MLV said.

The firm maintained its $7 price target on the shares.

XOMA Chart

XOMA data by YCharts

STOCKS TO BUY: TheStreet's Stocks Under $10 has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

More from Markets

Tesla Has Lost 15% Since Musk's Take-Private Tweet

Tesla Has Lost 15% Since Musk's Take-Private Tweet

Why Most Americans Like a Volatile Stock Market: Study

Why Most Americans Like a Volatile Stock Market: Study

Should Retirees Invest in the Tech Sector?

Should Retirees Invest in the Tech Sector?

Here's How to Trade Walmart, Nordstrom, Macy's and J.C. Penney After Earnings

Here's How to Trade Walmart, Nordstrom, Macy's and J.C. Penney After Earnings

Here's Why Stock Picking Is Especially Important in the Retail Sector

Here's Why Stock Picking Is Especially Important in the Retail Sector