On Tuesday, Baird initiated coverage on Alkermes stock (NASDAQ:ALKS), a biopharmaceutical company, with an Outperform rating and a price target of $37.00. The firm's analyst cited the company's solid financial guidance and promising pipeline as the basis for the positive outlook.
Alkermes is projected to generate revenue between $1.5 billion and $1.6 billion for the year 2024, with non-GAAP net income expected to be in the range of $465 million to $505 million. The company also reported having more than $800 million in cash at the end of the previous year. The analyst believes these factors provide a strong foundational value for the company's stock.
The firm also highlighted Alkermes' key pipeline candidate, ALKS 2680, which is being developed for the treatment of narcolepsy type 1. The analyst pointed out that ALKS 2680 targets the causal pathway of the disease. The drug has shown promising results in its phase 1b trials, which adds to the analyst's positive stance on the stock's potential.
Alkermes' focus on central nervous system disorders, including schizophrenia, depression, and addiction, along with its pipeline developments, are key factors that have likely influenced Baird's optimistic coverage initiation. The company's financial stability and the advancement of its clinical programs are expected to be the main drivers of its stock performance going forward.
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