Bank of America Securities analyst Jason Gerberry reiterated a Hold rating on Alkermes (ALKS – Research Report) today and set a price target of $35.00.
Jason Gerberry’s rating is based on a balanced assessment of Alkermes’ current business value and potential future developments. The analysis indicates that the company’s existing business, including its legacy brands Aristada and Lybalvi, provides a solid valuation floor, with projected loss of exclusivity extending into the mid-2030s. This stability contributes to the Hold rating, as it suggests a steady, though not overly aggressive, growth trajectory.
Furthermore, while the orexin program for narcolepsy presents significant potential, the market has already factored in much of this upside. The probability of extreme outcomes, either highly positive or negative, is considered low, which supports a neutral stance. The current stock price reflects a healthy contribution from the orexin program, and without more definitive data, the risk/reward profile remains balanced, justifying the Hold recommendation.
In another report released on April 3, RBC Capital also maintained a Hold rating on the stock with a $39.00 price target.