UPDATE: Canaccord Genuity Starts Vanda Pharmaceuticals (VNDA) at Buy

(Updated - January 9, 2015 8:17 AM EST)

Canaccord Genuity initiated coverage on Vanda Pharmaceuticals (NASDAQ: VNDA) with a Buy rating and a price target of $22.00.

Analyst Corey Davis said, "Vanda has been a public company for eight years and continues to surprise us with its ability to re-invent itself. As analysts, we've been involved since 2006 and the story has finally evolved to a point where it seems to no longer be a speculative investment, but one on the cusp of profitability with a cadre of products that have been de-risked. We see two keys: 1) the stock is underappreciated because there have been only three sell-siders covering it, and it is underowned by traditional Spec Pharma investors; and 2) if the "market" really believed Hetlioz can be a $300M drug (as we do), the market cap would certainly not be only $529M (~$400M enterprise value). Changing sentiment on these two items will be the key to the stock attaining our $22 price target, in our view."

For an analyst ratings summary and ratings history on Vanda Pharmaceuticals click here. For more ratings news on Vanda Pharmaceuticals click here.

Shares of Vanda Pharmaceuticals closed at $13.95 yesterday.

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