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Investing.com - Mizuho (NYSE:MFG) maintained its Neutral rating and $19.00 price target on Sarepta Therapeutics (NASDAQ:SRPT) following the company’s second-quarter 2025 earnings report and debt refinancing. The stock, currently trading at $20.22, has seen an 85% decline over the past year, though InvestingPro analysis suggests the company is currently undervalued.
The biotechnology company recently refinanced $1.15 billion in convertible senior notes that were due in 2027. This refinancing extends the maturity of $605 million of the notes to 2030 and reduces the company’s debt by approximately $123 million.
Mizuho estimates that the refinancing should enable Sarepta to repay the remaining $450 million of the 2027 convertible notes, significantly reducing concerns about the 2027 debt obligations.
For the third quarter of 2025, Mizuho lowered its sales forecast for Sarepta’s Elevidys drug from $85 million to $50 million, compared to the consensus estimate of $135 million. The firm attributes this reduction to a recent pause in Elevidys shipments, which it believes may cause longer-than-expected disruptions.
Mizuho will host a dinner with Sarepta management in New York City on Monday, August 25 at 5:00 PM.
In other recent news, Sarepta Therapeutics has announced a significant financial restructuring involving the exchange of approximately $700 million in convertible senior notes due 2027. The company will replace these with about $602 million in new 4.875% convertible senior notes due 2030, up to 6.7 million shares of common stock, and approximately $123.3 million in cash. This move is part of a privately negotiated agreement with select note holders. Additionally, Sarepta has sold over 9.2 million shares of Arrowhead Pharmaceuticals (NASDAQ:ARWR), expecting to gain at least $174 million in gross proceeds. As part of this transaction, Sarepta will also transfer around 2.66 million Arrowhead shares to fulfill a portion of a $100 million milestone payment obligation. Meanwhile, BofA Securities has lowered its price target for Sarepta Therapeutics to $16, maintaining an Underperform rating. The refinancing announcement and subsequent analyst action are notable developments for investors monitoring the company’s financial strategies.
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