Alkermes stock rating reiterated at Outperform by Mizuho ahead of Q3 results

Published 08/10/2025, 12:30
Alkermes stock rating reiterated at Outperform by Mizuho ahead of Q3 results

Investing.com - Mizuho has maintained its Outperform rating and $40.00 price target on Alkermes (NASDAQ:ALKS), currently trading at $30.95, ahead of the company’s third-quarter 2025 earnings report scheduled for October 22. The company, with a market capitalization of $5.1 billion, maintains a "GREAT" financial health rating according to InvestingPro analysis.

The investment firm expects Alkermes to post slightly above-consensus revenue of $358 million for the quarter, compared to the Bloomberg consensus estimate of $355 million, with GAAP earnings per share of $0.31 versus the consensus of $0.30.

Mizuho attributes the potential outperformance to above-consensus sales projections for Aristada and Lybalvi, two key products in the company’s portfolio.

The firm notes that investor attention is likely more focused on the upcoming Vibance-2 Phase 2 clinical trial results for alixorexton (ALKS-2680) in narcolepsy type 2, expected this fall, rather than the quarterly earnings.

While acknowledging concerns about potential visual adverse events at the higher doses being tested in the Vibance-2 trial, Mizuho suggests these worries may be overstated since narcolepsy type 2 patients are likely less hypersensitive to orexin than type 1 patients, potentially resulting in a more favorable risk/reward profile.

In other recent news, Alkermes has been the focus of several analyst updates and company developments. RBC Capital upgraded Alkermes from Sector Perform to Outperform, raising its price target to $44.00, based on the potential of its narcolepsy type 2 drug, alixorexton. Piper Sandler reiterated its Overweight rating with a $38.00 price target, noting that results from the Phase II Vibrance-2 study for alixorexton are anticipated in November. Stifel also maintained its Buy rating and set a $42.00 price target, expressing optimism about the drug’s prospects given the modest efficacy thresholds in current treatments for narcolepsy type 2.

Additionally, H.C. Wainwright reiterated a Neutral rating with a $46.00 price target after Alkermes presented detailed Phase 2 data from the Vibrance-1 study at the World Sleep Congress. On the corporate front, Alkermes announced the appointment of Joshua Reed as its new Chief Financial Officer, effective September 15, 2025. Reed brings over 30 years of financial leadership experience, having previously served as CFO at Omega Therapeutics and Aldeyra Therapeutics. These developments reflect a period of strategic focus and analyst interest in Alkermes’ ongoing projects and leadership changes.

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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