Mizuho Securities upgraded DepoMed Inc (NASDAQ: DEPO) from Neutral to Buy with a price target of $19.00 (from $18.00), on increased takeout probability.

Analyst Irina Koffler commented, "DEPO posted unimpressive numbers in 1Q:16 and shares got dragged down with the group on Friday. We think there is now an attractive entry point into a stock with some positive momentum and takeout prospects ahead, and we upgrade DEPO to Buy from Neutral. Our PT goes to $19 from $18."

She added, "We previously assigned a 20% probability of takeout to DEPO (at $20/share), coupled with 80% reliance on a ~$17/share DCF value. We are shifting to a 50%/50% probability allocation as we progress closer to the Nucynta/ ER settlement."

For an analyst ratings summary and ratings history on DepoMed Inc click here. For more ratings news on DepoMed Inc click here.

Shares of DepoMed Inc closed at $15.51 yesterday.