Street Calls of the Week
On Tuesday, BMO Capital Markets sustained a favorable outlook on Sarepta Therapeutics (NASDAQ:SRPT), maintaining an Outperform rating and a $200.00 price target for the company's shares. Currently trading at $116.89 with a market capitalization of $11.17 billion, Sarepta has demonstrated strong revenue growth of 48.45% over the last twelve months. According to InvestingPro data, the company's shares are currently trading near their Fair Value. The endorsement follows the release of two-year blinded Phase III trial data for Sarepta's gene therapy product, Elevidys.
The trial data revealed statistically significant improvements in both the primary endpoint, North Star Ambulatory Assessment (NSAA), and functional endpoints, such as time to rise (TTR) and 10-meter walk/run (10MWR), compared to pre-established external controls. These results are expected to support Elevidys' uptake and demonstrate its superiority, potentially aiding in its approval by the European Medicines Agency (EMA).
In addition to the primary findings, improvements were also observed in NSAA, TTR, and 10MWR, combined with gene expression in Part-1 patients at the two-year mark versus external controls, with statistical significance (p
The analysts also believe that the trial results will help differentiate Elevidys from upcoming competitors that have limited functional data. This differentiation is crucial as it could enhance Elevidys' commercial success, which is a significant topic of discussion among investors regarding the company's 2025 guidance. InvestingPro analysis reveals that Sarepta maintains a strong financial position with a current ratio of 3.84, indicating robust liquidity to support its commercial initiatives. The platform has identified 12 additional key insights about Sarepta's financial health and growth prospects.
BMO Capital's reiteration of the Outperform rating is based on the expectation that the positive trial outcomes will not only contribute to Elevidys' market penetration but also support regulatory approval processes, particularly with the EMA. The firm maintains its price target, indicating confidence in Sarepta Therapeutics' potential for growth and value creation for shareholders. Notably, analyst consensus remains bullish, with targets ranging from $75 to $217, and four analysts have recently revised their earnings expectations upward. For comprehensive analysis and detailed financial metrics, investors can access Sarepta's full Pro Research Report, available exclusively on InvestingPro.
In other recent news, Sarepta Therapeutics reported impressive revenue growth with total net product revenue reaching $1.79 billion for 2024. The company's Elevidys product and RNA-based PMO products played a significant role in this revenue increase. The EMBARK study results also brought positive news, revealing consistent and sustainable benefits for patients treated with Elevidys, a treatment for Duchenne Muscular Dystrophy.
Analysts have shown mixed reactions to these developments. Morgan Stanley (NYSE:MS) and Mizuho (NYSE:MFG) Securities have maintained their Overweight ratings, with price targets of $200 and $195 respectively, highlighting the promising data from the EMBARK trial. In contrast, H.C. Wainwright maintained a Sell rating, expressing concerns about Elevidys' long-term market penetration despite the company's impressive quarter-over-quarter growth.
Piper Sandler also reaffirmed its Overweight rating, emphasizing Sarepta's strong total net product revenue and the promising developments in its limb-girdle muscular dystrophy portfolio. BMO Capital Markets and RBC Capital Markets have also spotlighted Sarepta, highlighting the company's potential upside in revenue growth and strong financial health. These are the recent developments for Sarepta Therapeutics.
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