Brookline Capital Markets analyst Sally Yanchus initiated coverage last night of Bellerophon Therapeutics (BLPH) with a Buy rating and $35 price target.

The stock closed Monday up 49c to $11.91 and is rallying 21% to $14.40 in premarket trading. 

The company is developing inhaled nitric oxide therapy for pulmonary diseases and COVID-19. Its proprietary pulsatile nitric oxide delivery platform is the INOpulse, which ensures efficient delivery of nitric oxide to the lungs, Yanchus tells investors in a research note.

The analyst estimates the market potential of INOpulse at $4.7B. Bellerophon's main pulmonary disease indication of interstitial lung disease is a $3.1B potential and the COVID-19 opportunity is worth $250M, says Yanchus.