Piper Jaffray analyst Danielle Brill started Alkermes (ALKS) with a Neutral rating and $40 price target. The analyst says that while the shares are trading near 52-week lows, she struggles "to find something that will turn things around." She expects a positive data readout in Q4 from oral schizophrenia drug ALKS 3831, but believes this opportunity is already priced into shares. Proprietary pipeline sales will offset declining license and manufacturing agreement revenue, but Alkermes' overall annual growth "appears modest" at around 8%, Brill tells investors in a research note. She would start to get more constructive on the shares with signs of more robust revenue growth, such as indications that BIIB098 will be a big product for Biogen (BIIB), and/or Aristada successfully demonstrating superiority over Invega Sustenna in the ongoing head-to-head trial.

UBS lowered the firm's price target on Alkermes to $23 from $25 and keeps a Sell rating on the shares. UBS believes Alkermes stock will likely continue to underperform, as the FY24 guidance seems unachievable and there are no pipeline catalysts remaining for the year, the analyst tells investors in a research note.