Alkermes’ Strong Position and Misinterpreted Data: Justifying a Buy Rating

Evercore ISI analyst Umer Raffat has maintained their bullish stance on ALKS stock, giving a Buy rating today.

Umer Raffat has given his Buy rating due to a combination of factors that suggest Alkermes is in a strong position despite some market skepticism. Raffat disagrees with the Street’s negative reaction to Alkermes’ recent data, particularly in comparison to Centessa. He believes that Alkermes avoided a potential failure in narcolepsy type 2, unlike its competitor TAK-861, which is a positive indicator for the company’s prospects.
Raffat points out that the market may have misinterpreted the data concerning the mean wakefulness test (MWT) scores. He argues that the placebo-adjusted values might have been affected by overly conservative statistical assumptions, which could have understated the performance of Alkermes’ treatment. Additionally, Raffat notes that the trial’s baseline was unusually low, which impacted the results but does not reflect the treatment’s potential efficacy. These insights contribute to his confidence in Alkermes’ future performance, justifying his Buy rating.

According to TipRanks, Raffat is a 4-star analyst with an average return of 8.0% and a 47.24% success rate. Raffat covers the Healthcare sector, focusing on stocks such as Gilead Sciences, Alkermes, and Mineralys Therapeutics, Inc..

In another report released today, Truist Financial also maintained a Buy rating on the stock with a $50.00 price target.