JPMorgan lowers Sarepta Therapeutics stock price target to $20 from $28

Published 21/07/2025, 11:34
JPMorgan lowers Sarepta Therapeutics stock price target to $20 from $28

Investing.com - JPMorgan has reduced its price target on Sarepta Therapeutics (NASDAQ:SRPT) to $20.00 from $28.00 while maintaining an Overweight rating on the stock. The stock, currently trading at $14.08, has fallen over 90% in the past year, with analyst targets ranging from $9 to $110. According to InvestingPro analysis, the stock appears undervalued at current levels.

The firm cited a more conservative modeling approach and shifted its target timeline from December 2025 to December 2026, according to a research note released Monday.

JPMorgan’s analysis follows recent regulatory developments, including an FDA press release on Friday regarding Sarepta’s Elevidys treatment, which the firm believes will remain available for ambulatory patients.

The research note emphasized that as long as Elevidys stays on the market for ambulatory patients, JPMorgan sees upside potential in Sarepta shares from current levels despite the lower price target.

JPMorgan acknowledged potential risks to its thesis, noting that if Elevidys were removed from the market for ambulatory patients, it would be "thesis changing," while also highlighting sentiment volatility as a concern due to "headline unpredictability" particularly regarding regulatory matters.

In other recent news, Sarepta Therapeutics has faced significant challenges following a series of developments that have impacted its gene therapy treatments. The FDA requested Sarepta to voluntarily halt all shipments of its Duchenne muscular dystrophy treatment, Elevidys, which has raised concerns about the company’s long-term financial stability. Mizuho (NYSE:MFG) downgraded Sarepta from Outperform to Neutral, citing safety concerns after a third patient death related to its AAVrh74 platform vector. This downgrade was accompanied by a reduction in the price target from $40.00 to $14.00. Similarly, Leerink Partners downgraded Sarepta to Market Perform, lowering its price target to $10.00 due to credibility issues and the FDA’s request to stop Elevidys shipments. Deutsche Bank (ETR:DBKGn) also downgraded Sarepta to Sell, reducing its price target to $9.00, highlighting safety concerns and a lack of transparency as critical issues. William Blair maintained its Market Perform rating, despite acknowledging potential delays in Sarepta’s Biologics License Application for SRP-9003. BMO Capital’s survey revealed investor skepticism, with many doubting Sarepta’s ability to meet its financial obligations and expressing concerns over management credibility.

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