Alkermes stock price target lowered to $33 by BofA on growth outlook

Published 29/07/2025, 21:28
Alkermes stock price target lowered to $33 by BofA on growth outlook

Investing.com - BofA Securities has reduced its price target on Alkermes (NASDAQ:ALKS) to $33.00 from $35.00 while maintaining a Neutral rating on the stock. The company, currently trading at $27 with a P/E ratio of 12.5, appears undervalued according to InvestingPro analysis.

The adjustment comes despite Alkermes reporting strong second-quarter results that exceeded revenue expectations by 12%, with full-year 2025 results now expected to reach the high end of the company’s guidance range.

BofA Securities indicated that despite the quarterly strength, these results are not expected to carry forward to future years (2026 and beyond) as the growth trajectory for key brands remains unchanged.

The focus of Alkermes’ recent earnings call centered on its orexin program for narcolepsy (’2680), with limited details provided about the Vibrance-1 Phase 2 data in narcolepsy type-1 patients. For deeper insights into Alkermes’ financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.

Analysts are looking toward the detailed data presentation at World Sleep (September 5-10) and the upcoming Vibrance-2 study update in fall 2025 to better understand the competitive positioning of Alkermes’ treatment, particularly regarding efficacy and tolerability metrics.

In other recent news, Alkermes reported second-quarter financial results that surpassed analyst expectations. The biopharmaceutical company highlighted strong performance across its proprietary product portfolio. This positive financial outcome included both earnings and revenue figures that exceeded projections set by analysts. The announcement of these results led to a favorable reaction in pre-market trading. Alkermes’ ability to outperform expectations in this quarter marks a significant development for the company. These recent developments reflect the company’s ongoing efforts to strengthen its market position. Analysts and investors will likely keep a close watch on Alkermes as it continues to report its financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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