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On Thursday, Mizuho (NYSE:MFG) Securities adjusted their outlook on Sarepta Therapeutics (NASDAQ:SRPT) shares, reducing the price target from $195.00 to $190.00, while reaffirming an Outperform rating. The decision comes after a review of the company’s fourth quarter performance and future sales projections. According to InvestingPro data, analysts maintain a strong bullish consensus on the stock, with price targets ranging from $75 to $217.
Sarepta Therapeutics reported fourth-quarter product revenues of $638.2 million, a figure that aligns with the preannouncement made in January and surpasses both Mizuho’s estimate of $575.3 million and the consensus estimate of $567 million. The company has demonstrated impressive revenue growth of 48.45% over the last twelve months, according to InvestingPro data. Despite this, the company’s 2025 product sales guidance remains unchanged, with expectations ranging between $2.9 billion and $3.1 billion.
Mizuho analysts expressed continued confidence in Sarepta, emphasizing the stock’s current undervaluation. They noted that the shares are trading below the levels seen prior to the label expansion of Elevidys, despite strong management execution since the product’s launch. Currently trading near its 52-week low of $101.15, the stock has maintained relatively low price volatility with a beta of 0.75. The firm also sees potential for Sarepta to outperform first-quarter and full-year 2025 consensus forecasts for product sales, with InvestingPro reporting five analysts recently revising their earnings estimates upward.
The growth potential for Elevidys, a treatment for Duchenne muscular dystrophy (DMD), was highlighted as a key factor in Mizuho’s assessment. With less than 5% of eligible DMD patients having received treatment, there is a significant opportunity for increased adoption. Furthermore, Mizuho sees substantial prospects in Sarepta’s limb-girdle muscular dystrophy (LGMD) platform and its partnership with Arrowhead Pharmaceuticals (NASDAQ:ARWR) on RNA interference (siRNA) therapies.
The reduction in the price target to $190 is attributed primarily to an increased share count. Despite this adjustment, Mizuho’s stance on Sarepta Therapeutics remains optimistic, with expectations for continued growth and market performance.
In other recent news, Sarepta Therapeutics reported strong financial results for the fourth quarter of 2024, with earnings per share (EPS) of $1.9, exceeding the forecasted $1.54. The company’s revenue reached $658.4 million, surpassing the anticipated $589.45 million, marking a 75% year-over-year growth largely driven by Alevitus sales. Sarepta projects net product revenue for 2025 to be between $2.9 billion and $3.1 billion, indicating a potential 70% increase. The company remains optimistic about its gene therapy pipeline and future launches. Sarepta also announced the completion of its transaction with Arrowhead, adding a broad platform of siRNA to its gene therapy pipeline. Despite the positive earnings report, Sarepta’s stock fell by 3.14% in aftermarket trading. The company continues to emphasize its strategic focus on genetic medicine, positioning itself as a leader in the gene therapy space.
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