Alkermes (ALKS) PT Raised to $70 at Credit Suisse
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Credit Suisse analyst Vamil Divan reiterated an Outperform rating and raised its price target on Alkermes (NASDAQ: ALKS) to $70.00 (from $52.00) after the company released positive data after the close from the third Phase 3 study for their pipeline anti-depression drug ALKS-5461.
Divan commented, "We had removed the product from our model after the first two Phase 3 studies failed but, given the positive results, we now add it back in with a 60% probability of success. We assume a peak sales potential of $1.2Bn given the unmet need in treatment-resistant depression, leading to probability-adjusted sales of $750MM in our model in 2023. After incorporating expected additional expenses that we believe would be necessary to successfully commercialize the asset, our DCF for ALKS increases to $71. Our blended 12-month target price increases to $70 (from $52) and is 75% driven by the $71 DCF while incorporating a 25% component of relative valuation ($67, based off a 3.5x multiple of our assumed total company peak sales of ~$3Bn). Our 2017-2019 EPS estimates come down modestly given the additional expense we are now adding into the model."
Shares of Alkermes closed at $43.51 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Credit Suisse Downgrades NetApp (NTAP) to Underperform
- Oppenheimer Assumes Mallinckrodt plc (MNK) at Outperform
- Sigma Designs (SIGM): Revenue Headwinds Drive PT Cut - Baird
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesCredit Suisse, Raising Prices
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!