Balanced Risk-Reward Amid Softer 2026 Outlook Keeps Rating at Hold

Bank of America Securities analyst Jason Gerberry has reiterated their neutral stance on ALKS stock, giving a Hold rating yesterday.

Jason Gerberry has given his Hold rating due to a combination of factors including slightly weaker 2026 guidance and offsetting longer‑term opportunities. Management’s revenue outlook for existing proprietary drugs, particularly Lybalvi, came in modestly below consensus, while projected operating expenses and adjusted EBITDA were less favorable than previously expected, prompting small downward revisions to his 2026 forecasts.

At the same time, he views the upcoming CEO transition as low risk given the successor’s deep experience at Alkermes, and sees the Lumryz acquisition performing in line with prior assumptions. The orexin program’s Phase 3 design appears standard and on track, and key clinical and regulatory milestones for Lumryz and orexin remain slated for 2026–2027, supporting a balanced risk‑reward profile that, in his view, justifies maintaining a Neutral stance rather than upgrading or downgrading the stock.

Gerberry covers the Healthcare sector, focusing on stocks such as Johnson & Johnson, Eli Lilly & Co, and Teva Pharmaceutical. According to TipRanks, Gerberry has an average return of 17.3% and a 63.58% success rate on recommended stocks.

In another report released yesterday, TipRanks – OpenAI also downgraded the stock to a Hold with a $37.00 price target.