Barclays analyst Douglas Tsao upgraded Valeant Pharmaceuticals (VRX) to Overweight from Equal Weight and raised his price target for the shares to $29 from $20. The drugmaker closed yesterday up $1.59 to $23.59.

Valeant's business has hit an inflection point with its existing business stabilizing, which offers a foundation for the company to enjoy growth driven by upcoming product launches, Tsao tells investors in a research note.

While none of the launches are likely to be "blockbusters," with base business performing well and impact of loss-of-exclusivities lessening after this year, the "threshold for success has come down meaningfully," Tsao contends.