5 big analyst AI moves: Nvidia guidance warning; Snowflake, Palo Alto upgraded
On Thursday, Stifel analysts maintained their Buy rating and $42.00 price target for Alkermes stock (NASDAQ:ALKS), which currently trades at $30.68 with a market capitalization of $5.06 billion. Following Alkermes’ first-quarter earnings report for 2025, the company has exceeded expectations on both revenue and earnings per share, while reaffirming its full-year guidance. According to InvestingPro data, analysts’ price targets range from $30 to $52, reflecting significant potential upside.
Alkermes’ solid financial performance is underpinned by its core business, which continues to provide a stable foundation for the company’s valuation. With a strong financial health score rated as "GREAT" by InvestingPro, the company maintains robust profitability with a diluted EPS of $2.20 over the last twelve months. The analysts’ focus, however, has shifted to the potential of Alkermes’ orexin receptor agonist, ALKS 2680, which is anticipated to have significant readouts from two phase 2 studies later in the year.
The company has clarified the expected timeline for these data releases, with Narcolepsy Type 1 (NT1) results anticipated in early third quarter and Narcolepsy Type 2 (NT2) findings expected in the fall. The NT1 study is widely expected to yield positive outcomes, with key considerations being the safety profile and the NT2 probability of success.
The Stifel analysts expressed optimism regarding the prospects of ALKS 2680, particularly in the event of positive results from both studies, which could substantially de-risk the commercial opportunity for the drug. This optimism is reflected in their steady price target, despite the updated financial model accounting for the latest quarterly results.
In other recent news, Alkermes reported that its Chief Financial Officer, Iain M. Brown, passed away after a battle with cancer. The company is currently conducting a search for a new CFO, with interim officers Blair C. Jackson and Samuel J. Parisi continuing in their roles. In terms of financial performance, Goldman Sachs raised its price target for Alkermes to $32, maintaining a Buy rating, citing strong fourth-quarter 2024 results that exceeded revenue and earnings expectations. The firm’s focus on developing treatments for sleep disorders, particularly through its Orexin agonist pipeline, is attracting positive attention. RBC Capital Markets initiated coverage of Alkermes with a Sector Perform rating and a $40 price target, acknowledging the potential of its next-generation orexin antagonist for narcolepsy treatment. TD Cowen also maintained a Buy rating with a $27 target, highlighting the company’s strong position in the sleep disorder market. Cantor Fitzgerald reaffirmed its Overweight rating with a $43 target, emphasizing the stock’s appeal for long-term investors due to anticipated data releases and pipeline expansion. These developments reflect a mix of cautious optimism and confidence in Alkermes’ strategic direction and market opportunities.
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