Jefferies reiterates Buy rating on Sarepta stock, maintains $35 price target

Investing.com - Jefferies maintained its Buy rating on Sarepta Therapeutics (NASDAQ:SRPT) with a price target of $35.00 ahead of the company’s third-quarter earnings report, scheduled for October 29. According to InvestingPro data, analyst targets for the stock range from $5 to $80, while the company’s shares have shown strong momentum with a 20% gain over the past week.

The firm noted that potential stock upside may depend less on the actual quarterly results and more on forward-looking trends for Elevidys and PMO products in Duchenne muscular dystrophy (DMD) treatment.

Jefferies highlighted investor interest in management’s confidence regarding Elevidys’ safety data in nonambulatory DMD patients, with results expected in the first half of 2026.

The research firm indicated that market participants are seeking reassurance that Elevidys will generate at least $500 million annually without additional safety concerns, while the PMO franchise maintains durability beyond 2026.

Jefferies also mentioned that new pipeline data from ARWR expected in the fourth quarter of 2025 could provide diversification for Sarepta’s portfolio.

In other recent news, Sarepta Therapeutics announced a $700 million convertible note exchange and private placement. The company agreed to exchange $700 million in principal amount of its existing notes for new 4.875% Convertible Senior Notes due 2030, along with shares of common stock and cash. This move has been met with mixed reactions, as H.C. Wainwright reiterated its Sell rating, citing the financing as a "net negative for equity holders" due to modest net debt reduction and nearly 10% dilution. Meanwhile, Mizuho maintained a Neutral rating, projecting a "light" third quarter for 2025, with expected revenue of $274 million, below the consensus estimate of $335 million. Mizuho also forecasts a non-GAAP earnings per share loss of $1.57, compared to the Bloomberg consensus of -$0.26. Cantor Fitzgerald also reiterated a Neutral rating, highlighting safety concerns in Sarepta’s clinical history. BMO Capital echoed concerns about Sarepta’s Elevidys therapy, maintaining a Market Perform rating amid recent patient deaths. These developments underscore ongoing challenges and scrutiny facing Sarepta Therapeutics.

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