On Monday, Sarepta Therapeutics (NASDAQ:SRPT) received a stock rating upgrade from RBC Capital from Sector Perform to Outperform, with a new price target set at $182.00. The upgrade comes despite the shares having previously underperformed relative to expectations, even after receiving a broad and favorable U.S. label for their drug Elevidys.
The underperformance of Sarepta's stock was attributed to concerns about treatment throughput, center capacity, and manufacturing supply. However, following a survey of physicians and feedback from a major Duchenne Muscular Dystrophy (DMD) advocacy group leader, the analyst believes these concerns may be overstated.
The analyst's increased conviction is based on insights that suggest the significant near-term launch inflection, which is modeled for the period following the second-quarter report, is becoming more probable. The expectation is that Sarepta's stock could see a substantial rise as the market realizes the potential of Elevidys.
The positive outlook is based on the belief that many of the initial concerns regarding Sarepta's ability to deliver Elevidys are manageable. This perspective has led to the recommendation that investing in Sarepta shares could be advantageous, particularly before the anticipated major launch impact becomes evident to the broader market.
In other recent news, Sarepta Therapeutics has been the focus of several revisions and raised price targets following the FDA's expanded approval of its drug, Elevidys. Piper Sandler maintained an Overweight rating for Sarepta, highlighting strong interest in Elevidys from both ambulatory and non-ambulatory patients. BMO Capital upheld its Outperform rating, while Citi adjusted Sarepta's shares from Buy to Neutral but raised the price target to $176.
Mizuho Securities increased its price target to $200, citing Elevidys' potential to surpass long-term consensus estimates. BofA Securities also raised its price target to $213, emphasizing the drug's potential market reach. These developments underscore Elevidys' significance and its potential impact on Sarepta's future revenue prospects.
Sarepta Therapeutics is also in partnership with Roche (LON:0QQ6) for the global distribution of Elevidys. The FDA's approval of Elevidys for both ambulatory and non-ambulatory Duchenne muscular dystrophy patients aged four and older has led to a series of revisions and raised price targets for Sarepta by various firms.
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