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.

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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

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