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Investing.com - Bernstein SocGen Group has raised its price target on Sarepta Therapeutics (NASDAQ:SRPT) to $18.00 from $13.00 while maintaining a Market Perform rating. According to InvestingPro data, analyst targets for the stock range from $5 to $80, with 7 analysts recently revising earnings estimates upward. The stock appears undervalued based on InvestingPro’s Fair Value analysis.
The price target adjustment follows the FDA’s surprise announcement that shipments of Elevidys could resume for ambulatory patients effective immediately, prompting Bernstein to add the drug back into its financial model. The news catalyzed an impressive 18.84% gain over the past week, though the stock remains significantly below its 52-week high of $146.38.
Bernstein now forecasts risk-adjusted US Elevidys sales of $1.15 billion in 2025 and approximately $400 million in subsequent years, reflecting anticipated future competition in a market the firm estimates at around $600 million.
The updated model incorporates a 20% chance of the product being withdrawn in the future, which Bernstein suggests investors also perceive as a risk given the stock closed up only 14% on Tuesday following the FDA announcement.
Bernstein has also increased its near-term R&D and SG&A expense projections to align with Sarepta’s restructuring announcement, having previously assumed additional cost reductions would be necessary with Elevidys off the market.
In other recent news, Sarepta Therapeutics has seen significant developments following the FDA’s decision to lift a voluntary hold on its ELEVIDYS therapy for ambulatory Duchenne muscular dystrophy patients. This decision came after an investigation into the death of an 8-year-old patient in Brazil, which was deemed unlikely related to the therapy. As a result, several analyst firms have adjusted their ratings and price targets for Sarepta. Oppenheimer upgraded the stock from Perform to Outperform, raising its price target from $30.00 to $37.00. Barclays (LON:BARC) also upgraded the stock from Underweight to Equalweight, increasing the price target to $22.00 from $10.00. Additionally, TD Cowen raised its price target from $12.00 to $17.00, maintaining a Hold rating. Piper Sandler adjusted its price target to $15.00 from $11.00, while keeping a Neutral rating. These developments highlight the renewed confidence in Sarepta’s ELEVIDYS therapy following the FDA’s clearance.
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