Bitcoin price today: falls to 2-week low below $113k ahead of Fed Jackson Hole
On Thursday, Evercore ISI downgraded Sarepta Therapeutics (NASDAQ:SRPT) stock from "Outperform" to "In Line," significantly reducing the price target to $50 from the previous $123. The stock, currently trading at $36.72, has fallen over 72% in the past year and is near its 52-week low of $36.59. According to InvestingPro analysis, the stock appears undervalued at current levels, with 14 key insights available to subscribers. The firm’s analyst cited various factors influencing the decision, including competitive pressures and regulatory uncertainties.
Sarepta Therapeutics, a biotechnology company focused on the discovery and development of RNA-based therapeutics, has seen a shift in analyst sentiment. Despite recent challenges, the company maintains strong fundamentals with impressive revenue growth of 53% and a healthy current ratio of 4.2, according to InvestingPro data. Evercore ISI highlighted strong market feedback for competitors in the PMO (phosphorodiamidate morpholino oligomer) space, acknowledging that while FDA uncertainties might benefit Sarepta, there is an 80% chance that PMOs will remain on the market following confirmatory data.
The firm anticipates a notable acceleration in U.S. sales for Elevidys, Sarepta’s product, in the second half of 2025. However, they expect a decline in use after that period. The model assumes a 29% market penetration into the eligible prevalent population, with approximately 80% of that figure comprising ambulatory patients. Evercore ISI also estimates a 90% probability that Elevidys will maintain its full label in the market.
For Sarepta’s LGMD (limb-girdle muscular dystrophy) programs, Evercore ISI assigns a 75% chance of approval for LGMD2E, 60% for LGMD2C/D, and 33% for LGMD2B/2A, projecting peak risk-adjusted sales of $550 million.
In terms of operating expenses, Evercore ISI projects a significant reduction in outer-year SG&A (Selling, General, and Administrative Expenses) and R&D (Research and Development) spending below consensus, which may increase if data from ARWR (Arrowhead Pharmaceuticals (NASDAQ:ARWR)) is strong.
The valuation model includes a $1 billion NPV (Net Present Value) for ARWR assets, which is close to the price Sarepta paid. With a current market capitalization of $3.61 billion and an attractive PEG ratio of 0.11, the stock shows potential value characteristics. The firm’s financial model forecasts Sarepta ending 2027 with $1.3 billion in cash, with free cash flow above $250 million in 2028 and growing to $400 million by 2032. The target market capitalization is set at $5 billion, corresponding to the new price target of $50 per share. For detailed valuation metrics and comprehensive analysis, investors can access the full Pro Research Report on InvestingPro, which covers over 1,400 US stocks.
In other recent news, Sarepta Therapeutics has faced a series of analyst downgrades and revised financial outlooks following its recent earnings report. The company reported first-quarter 2025 revenue for its product, Elevidys, at $375 million, falling short of the analyst forecast of $444 million and the consensus estimate of $414 million. As a result, Sarepta has lowered its full-year revenue guidance from $2.9-$3.1 billion to $2.3-$2.6 billion. TD Cowen has reduced its price target to $137 while maintaining a Buy rating, indicating confidence in Sarepta’s long-term potential despite near-term challenges. BMO Capital also cut its price target to $120, citing concerns but maintaining an Outperform rating. RBC Capital Markets lowered its target to $58, reflecting concerns over Elevidys after a patient death and other production issues, while maintaining a Sector Perform rating. Cantor Fitzgerald revised its target to $81, maintaining an Overweight rating, but expressed caution due to safety concerns and competitive threats. H.C. Wainwright set a new target of $40, maintaining a Neutral rating, and cited plateauing Elevidys sales and increased regulatory risks. These developments highlight the significant challenges Sarepta faces as it navigates the current market environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.