Cipher Pharmaceuticals upgraded to Buy from Hold at Stifel

Stifel upgraded Cipher Pharmaceuticals to Buy from Hold with a C$16 price target. The company announced a transformational acquisition on July 29 of $89.5M for the global rights and commercial infrastructure of Natroba, which is estimated to more than double its EBITDA, the analyst tells investors in a research note. Stifel adds that it sees Cipher as having secular tailwinds, including in a social media world, with a base business that is high margin at 60% EBITDA with a strong conversion into free cash flow.