Bernstein initiates Sarepta Therapeutics stock with Market Perform rating

Published 29/07/2025, 09:56
Bernstein initiates Sarepta Therapeutics stock with Market Perform rating

Investing.com - Bernstein SocGen Group initiated coverage on Sarepta Therapeutics (NASDAQ:SRPT) with a Market Perform rating and a $13.00 price target on Tuesday, as the company approaches its next earnings release on July 30.

The rating comes amid significant challenges for Sarepta, whose stock has plummeted 90.51% over the past year, with an 88.6% decline year-to-date, following multiple patient deaths and the company’s recent decision to pause all commercial shipments of Elevidys under FDA pressure. InvestingPro analysis indicates the stock is currently in oversold territory.

Bernstein noted investor frustration with Sarepta’s disclosure practices, citing two recently reported deaths—one in Elevidys treatment deemed unrelated and another in LGMD—that were not proactively disclosed by the company. Seven analysts have recently revised their earnings expectations downward, according to InvestingPro data.

The firm expressed concerns about Sarepta’s financial obligations, including a $1.15 billion convertible note due in 2027 and approximately $300 million in milestone payments owed to partner Arrowhead before year-end 2025.

Sarepta’s $600 million secured revolving credit facility requires maintaining trailing four-quarter EBITDA above $172 million, which Bernstein indicates is now uncertain with Elevidys removed from the market.

In other recent news, Sarepta Therapeutics has seen several significant developments. The company announced that the FDA has lifted the pause on shipments of its Duchenne muscular dystrophy gene therapy, Elevidys, for ambulatory patients. This decision followed a rapid safety review by the FDA and represents a key change in Sarepta’s operational status. In response, JPMorgan upgraded Sarepta’s stock rating from Underweight to Neutral, setting a price target of $24.00. However, not all analysts are optimistic; H.C. Wainwright reiterated a Sell rating with a $0 target, citing setbacks like patient deaths and a negative EU recommendation. Barclays (LON:BARC) also downgraded Sarepta to Underweight, lowering the price target to $10.00 due to concerns about Elevidys. In a positive development, Arrowhead Pharmaceuticals (NASDAQ:ARWR) earned a $100 million milestone payment from Sarepta after meeting an enrollment target in a clinical study. These recent events highlight a period of mixed fortunes for Sarepta Therapeutics, with both challenges and opportunities impacting the company’s outlook.

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