Acadia Pharmaceuticals (NASDAQ: ACAD) is having a strong session Tuesday. Specifically, the drugmaker's shares were up by a healthy 6.7% on moderate volume at 10:02 a.m. ET. 

What's sparking this rally? Ahead of the opening bell, analyst Tessa Romero upgraded the bank's outlook from neutral to overweight and raised its 12-month price target on the stock to $32 per share (up from $29 per share). This updated price target implies a noteworthy 47% upside potential relative to Acadia Pharmaceuticals' closing price on Monday. 

Despite an impressive 44.6% gain year-to-date, Acadia Pharmaceuticals stock has actually been struggling in recent weeks. Thanks to concerns about a patent dispute, rising bond yields, and a general aversion to risk by some investors, the biotech's shares have lost nearly a third of their value since hitting a 52-week high back in late July. As a result, this analyst upgrade probably couldn't have come at a better time.

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Source Fool.com