H.C. Wainwright initiated coverage of Ocuphire Pharma with a buy recommendation on Wednesday, sending the stock surging.

Analyst Matthew Caufield assigned a $26 price objective on the stock, citing four factors for his decision.

The stock is currently trading 38 % higher than Tuesday's finish of $4.81, having initially risen to a high of $5.50.

Ocuphire Pharma, Inc. (OCUP)

The strong topline findings for Nyxol in Ocuphire's phase 3 MIRA-2 trial are the first of four grounds for the grade. It presents an "opportune timing to get into the name prior to further program validation," which the analyst expects in the near future, according to the analyst.

He also added that Ocuphire's APX3330 treatment for diabetic retinopathy is cheap, citing a crucial differential of employing Nyxol as another plus for the stock.

"We believe investors have yet to fully connect with Ocuphire's Nyxol story and forthcoming catalysts, despite the company's reverse merger with traditional oncology platform Rexahn Pharmaceuticals and NASDAQ listing in November 2020," Caufield said.

On Tuesday, Ocuphire informed investors that the second phase 3 trial of Nyxol had enrolled its first patients.