Alkermes (ALKS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Jason Gerberry from Bank of America Securities reiterated a Hold rating on the stock and has a $34.00 price target.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Jason Gerberry’s rating is based on several factors surrounding Alkermes’ current market position and future potential. The company’s recent quarterly report did not present any major surprises, which suggests stability but not necessarily immediate growth potential. The anticipated data from the ALKS2680 program, particularly in treating narcolepsy, is a critical upcoming catalyst. However, the stock price seems to already reflect expected success from this program, thereby limiting potential upside from positive data outcomes.
Additionally, Alkermes’ recent earnings benefited from non-recurring items, which may not be sustainable in the long term. The guidance for 2025 proprietary product sales was slightly below consensus expectations, indicating potential challenges ahead. Despite these concerns, there are positive signs such as improving gross margins, which led to a slight increase in the price objective. However, uncertainties around product sales and competitive pressures contribute to maintaining a Hold rating.
ALKS’s price has also changed moderately for the past six months – from $25.940 to $33.500, which is a 29.14% increase.