UPDATE: Morgan Stanley Raising Price Target On Pharmasset

Morgan Stanley is out with a research report on Pharmasset, Inc. VRUS and is raising its price target to $206 from $175, and it has an Overweight rating on shares. In a note to clients, Morgan Stanley writes, "PSI-7977, Pharmasset's key value driver, has demonstrated solid efficacy (interim and final) across HCV genotypes 1,2,3 in regimens both with and without PEG/ribavirin. This broad activity and combinability creates many potential paths to market. We expect clarity on the G2/3 path, a faster approach vs. our base case, in 1H12 post-SVR data from Ph 2b G2/3 studies. Note: these paths are our assumptions, with the company not endorsing a specific one to date." Shares of VRUS closed at $130.75 yesterday.