BMO Capital reiterates Market Perform rating on Sarepta stock at $50

Published 07/08/2025, 16:54
BMO Capital reiterates Market Perform rating on Sarepta stock at $50

Investing.com - BMO Capital maintained its Market Perform rating and $50.00 price target on Sarepta Therapeutics (NASDAQ:SRPT) following the company’s second-quarter earnings report. The biotech company, currently valued at $1.72 billion, has seen its stock decline over 86% year-to-date. According to InvestingPro analysis, the stock appears undervalued at current levels.

Sarepta has resumed Elevidys infusions after a temporary pause, with the first infusion occurring on August 5, according to BMO Capital. The company expects commercial dynamics to normalize by approximately the fourth quarter, while the third quarter will be affected by the 10-day pause-related disruption. With annual revenue of $2.48 billion and a concerning cash burn rate, InvestingPro data reveals 10+ additional key insights available to subscribers.

Management has prioritized ensuring continued safety of Elevidys in ambulatory patients, implementing a label update and engaging proactively with physicians, the research firm noted.

BMO Capital reported that Sarepta’s management remains confident in meeting its financial obligations, pointing to the share buyback announced in May as evidence of this confidence.

The company does not anticipate that departures of senior staff from the FDA’s Center for Biologics Evaluation and Research (CBER) will cause regulatory disruptions, as decision-making continues to be science-based, according to the research note.

In other recent news, Sarepta Therapeutics reported strong second-quarter earnings, significantly surpassing analyst expectations. The company announced adjusted earnings of $2.02 per share, well above the consensus estimate of $0.70. Revenue reached $611.1 million, exceeding projections of $532.86 million and marking a 68% increase from the previous year. Net product revenues also rose 42% year-over-year, totaling $513.1 million. Additionally, Sarepta resumed shipments of ELEVIDYS for ambulatory Duchenne muscular dystrophy patients, contributing to positive sentiment. In another development, Wells Fargo (NYSE:WFC) raised its price target for Sarepta Therapeutics to $50 from $48, maintaining an Overweight rating. This adjustment was attributed to progress in Sarepta’s siRNA programs, developed in partnership with Arrowhead Pharmaceuticals (NASDAQ:ARWR). The SRP-1001 Phase 1/2 study for facioscapulohumeral muscular dystrophy has fully enrolled three single ascending dose cohorts, with preliminary data expected in the second half of 2025.

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