Alkermes price target raised to $48 from $43 at Cantor Fitzgerald

Cantor Fitzgerald analyst Charles Duncan raised the firm’s price target on Alkermes to $48 from $43 and keeps an Overweight rating on the shares ahead of the Sleep 2024 conference. The analyst views orexin 2 receptor agonists as a promising potentially “disease-modifying” targeted mechanism for sleep and wake disorders with billion-dollar revenue potential. Cantor is most interested in Alkermes’ ALKS 2680, the company’s orexin 2 receptor agonist “with an emerging profile that may support best-in-class potential to drive leadership in the narcolepsy market.” Due to increased conviction in a differentiated emerging profile that may establish leadership in the orexin 2 receptor agonist class, Cantor incorporated ALKS 2680 in its valuation of Alkermes with a “conservative” probability of success of 40%.