Goldman Sachs resumes Alkermes stock coverage with neutral rating

Goldman Sachs has recommenced coverage on Alkermes plc (NASDAQ:ALKS) with a neutral rating and has set a price target of $50.00 per share, suggesting a potential 19% increase from the current trading price of $42.13. The biopharmaceutical company is valued at a high P/E ratio of 108.5, indicating it may be undervalued at present.

Alkermes specializes in neuropsychiatric treatments, including Aristada, Lybalvi, and Vivitrol, for conditions such as schizophrenia, bipolar I disorder, alcohol dependence, and opioid dependence. The company is also developing various pipeline drugs, with the orexin 2 receptor agonist alixorexton in late-stage trials for narcolepsy and idiopathic hypersomnia, and several early-stage programs targeting ADHD and fatigue associated with neurodegenerative disorders.

Recent clinical trial results for Alkermes' ADHD drug candidate, ALKS 7290, showed promising results in treating ADHD symptoms in adults. Other analysts, such as TD Cowen and Stifel, have also recommended buying the stock, with price targets ranging from $58.00 to $63.00. Alkermes recently amended its credit agreement, reducing interest rate spreads on its senior secured term loan facilities.