UPDATE: Jefferies Upgrades Alkermes to Buy

Jefferies is out with its report today on Alkermes ALKS, upgrading ALKS from Hold to Buy, after its merger with Elan became official. In its report, Jefferies writes, "This upgrade reflects our enthusiasm for the merger itself – and how we believe it significantly improves the fundamentals of ALKS both in the near- and long-term – and our view that risk-reward (especially in light of the current volatility in the broader market) is compelling given the current valuation. At a $21 PT, this represents 35% in potential upside from the stock's last close." Shares of ALKS closed Friday at $15.55, up 3.60% from Thursday's close.