Piper Sandler has adjusted its price target for Sarepta Therapeutics (NASDAQ: NASDAQ:SRPT), a biopharmaceutical company, to $200 from the previous target of $205.
The firm maintained its Overweight rating on the company's stock. The revision follows Sarepta's second-quarter earnings report which showed sales of Elevidys, one of its products, at $121.7 million.
This figure fell short of the consensus estimate of $138 million and Piper Sandler's own estimate of $169 million.
Sarepta's total product revenue for the quarter was reported at $360.5 million, which was also below the consensus estimate of $374 million and the firm's estimate of $403 million.
However, the company's exon-skipping PMO franchise performed well, with combined sales of $238.8 million, surpassing both the consensus estimate of $236 million and Piper Sandler's estimate of $234 million.
Looking forward, Sarepta anticipates its net product sales to be in the range of $2.9 billion to $3.1 billion by the year 2025. The forecast is based on an expected strong uptake of Elevidys sales in the second half of 2024, with the company guiding to modest growth in the third quarter and strong growth in the fourth quarter, continuing into 2025.
RBC Capital upgraded Sarepta's stock rating from Sector Perform to Outperform, highlighting a positive outlook for Elevidys. The upgrade came despite earlier concerns about Sarepta's ability to deliver Elevidys, which now appear to be manageable.
Piper Sandler maintained an Overweight rating for Sarepta, indicating strong interest in Elevidys from both ambulatory and non-ambulatory patients. BMO Capital also upheld its Outperform rating, suggesting Sarepta could potentially monopolize the Duchenne muscular dystrophy (DMD) market with Elevidys.
However, Citi downgraded Sarepta's shares from Buy to Neutral, albeit with a raised price target of $176. The firm believes that Sarepta's current valuation is fitting given recent developments and anticipates gradual growth based on incremental positive developments.
Mizuho Securities increased its price target for Sarepta to $200, citing the potential for Elevidys sales to surpass long-term consensus estimates. The firm also highlighted the considerable potential of Sarepta's pipeline gene therapy assets for limb-girdle muscular dystrophy (LGMD).
InvestingPro Insights
Following Piper Sandler's updated price target for Sarepta Therapeutics, investors may benefit from additional context provided by real-time data from InvestingPro. Sarepta's market capitalization is currently at $13.24 billion, indicating its significant presence in the biopharmaceutical industry. Despite a high P/E ratio of 784.94, which suggests a premium valuation, the company's revenue growth is robust, with a 43.83% increase over the last twelve months as of Q1 2024, and an even more impressive quarterly revenue growth of 63.1% for Q1 2024.
InvestingPro Tips highlight that Sarepta is expected to become profitable this year, a sentiment echoed by analysts, and has already been profitable over the last twelve months. The company's liquid assets surpass its short-term obligations, providing financial flexibility. However, it is trading at a high Price/Book multiple of 13.77, which may raise questions about the sustainability of its current stock price levels.
For investors looking for more depth, InvestingPro offers additional tips, including insights on Sarepta's moderate level of debt, the company's high return over the last decade, and the fact that it does not pay dividends, which could influence investment strategies focused on income. There are 9 additional tips available on InvestingPro for Sarepta Therapeutics, accessible at https://www.investing.com/pro/SRPT, providing a more comprehensive analysis for those considering an investment in the company.
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