Cara Therapeutics Inc. (NASDAQ: CARA) recently announced data from its late-stage trial in patients with chronic kidney disease (CKD). While there was a very positive reaction among investors, one analyst believes that this stock could soar even higher.

A recent Phase 3 study of Korsuva achieved its primary endpoint of patients achieving a three-point or greater improvement from baseline in the weekly mean of the daily 24-hour Worst Itching Intensity Numeric Rating Scale (WI-NRS) score. At week 12, it was 51%, versus 28% for patients on placebo.

The secondary endpoint saw 39% of patients achieving a four-point or greater improvement from baseline in the weekly mean of the daily 24-hour WI-NRS score at week 12, versus 18% for patients on the placebo.

Janney Capital has a Buy rating on Cara Therapeutics and raised its price target to $33 from $27, implying upside of 53% from the most recent closing price of $21.57. The firm believes that the results move the firm closer to approval and strengthens the likelihood of a strong commercial launch.

Here’s what the brokerage firm had to say:

An unexpected surprise in today’s data is significant improvement in itch intensity starting at Week 1. This quick onset of action despite some patients still continuing use of anti-itch medication (e.g. antihistamines) in both the Korsuva and placebo arms demonstrates the inadequacy of current treatments and underscores the efficacy of Korsuva. We view the quick onset as a key benefit that is likely to support commercial uptake.

Shares of Cara Therapeutics traded at $21.53 on Thursday, in a 52-week range of $12.19 to $24.30. The consensus price target is $26.20.

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