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Investing.com - Needham has reiterated its Buy rating and $50.00 price target on Sarepta Therapeutics (NASDAQ:SRPT) following the company’s announcement of a strategic reorganization. The stock, currently trading near $18.38, has fallen 87% over the past year, though InvestingPro analysis suggests the company is currently undervalued.
The biotechnology company revealed plans for a workforce reduction of approximately 36% as part of its restructuring efforts, according to Needham’s research note published Thursday.
Sarepta also reported preliminary second-quarter 2025 financial results, with Elevidys sales reaching approximately $282 million, representing a 25% quarter-over-quarter decline.
The company’s management expressed confidence in meeting upcoming debt obligations for its 2027 convertible notes, which Needham indicated alleviates a key overhang on the stock.
Needham expects Elevidys sales to continue declining in the near term as patients delay treatment while additional risk/benefit data is collected, but maintained its positive outlook on the stock.
In other recent news, Sarepta Therapeutics reported preliminary second-quarter 2025 financial results, revealing total net product revenue of $513 million. This figure includes $282 million from its gene therapy ELEVIDYS, which slightly surpassed H.C. Wainwright’s estimate but fell short of the Street consensus. Sarepta’s strategic restructuring plan involves cutting approximately 500 jobs, aiming to save about $400 million annually. The company is refocusing its efforts on high-impact programs, particularly its siRNA platform assets, while maintaining its Duchenne muscular dystrophy portfolio. Mizuho (NYSE:MFG) has maintained an Outperform rating on Sarepta, citing reduced concerns about potential FDA market withdrawal of ELEVIDYS. Additionally, the FDA has requested a black box warning for ELEVIDYS due to risks of acute liver injury, which Sarepta has agreed to implement. JPMorgan has adjusted its price target for Sarepta to $28, maintaining an Overweight rating. The restructuring is also expected to help Sarepta meet its 2027 financial obligations, with the company ending the quarter with $850 million in cash and investments.
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