Alkermes upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded Alkermes (ALKS) to Outperform from Sector Perform with a price target of $44, up from $42. The firm’s analysis of potential narcolepsy type 2 treatment effects for alixorexton suggest the drug is likely to show clinically meaningful benefits with a tolerable safety profile. Post the selloff on the narcolepsy type 1 data, sentiment continues to be bearish on Alkermes’ potential market positioning in narcolepsy type 2, the analyst tells investors in a research note. RBC believes this creates a buying opportunity into the narcolepsy type 2 data. Alkermes shares are undervaluing even modest success in the narcolepsy space, contends the firm.