Barclays upgrades Sarepta Therapeutics stock rating on FDA hold removal

Published 29/07/2025, 16:04
Barclays upgrades Sarepta Therapeutics stock rating on FDA hold removal

Investing.com - Barclays (LON:BARC) upgraded Sarepta Therapeutics (NASDAQ:SRPT) stock rating from Underweight to Equalweight and raised its price target to $22.00 from $10.00. The stock, currently trading at $17.39, has experienced significant volatility, falling nearly 88% over the past six months. According to InvestingPro data, the company’s RSI indicates oversold conditions.

The upgrade follows the FDA’s decision to remove its hold request on Sarepta’s Elevidys treatment for ambulatory patients. The regulatory hold had been in place for approximately one week.

The FDA initially placed the hold after a patient death was reported more than one month ago. After review, regulators determined the death was not related to the drug.

Barclays noted that the removal of the regulatory hold eliminates a significant liquidity risk for the company, at least temporarily.

The research firm acknowledged challenges in keeping pace with recent FDA decisions regarding events that occurred months earlier. The company, with a market capitalization of $1.71 billion, faces ongoing profitability challenges despite generating over $2.2 billion in revenue over the last twelve months.

In other recent news, Sarepta Therapeutics has been at the center of several significant developments. The FDA is considering lifting its voluntary pause on ELEVIDYS shipments for ambulatory Duchenne muscular dystrophy patients after determining that the death of an 8-year-old patient in Brazil was "unlikely related to the therapy." This decision has led to a surge in Sarepta’s stock price. Following this news, Piper Sandler raised its price target for Sarepta Therapeutics to $15, maintaining a Neutral rating, while BMO Capital increased its price target to $50 with a Market Perform rating. H.C. Wainwright also adjusted its price target to $5 from $0, citing challenges in the uptake of ELEVIDYS. Bernstein initiated coverage on Sarepta with a Market Perform rating and a $13 price target, highlighting the company’s year-to-date stock decline and recent operational challenges. These developments reflect a complex landscape for Sarepta as it navigates regulatory and market dynamics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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