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On Monday, Piper Sandler adjusted the price target for Sarepta Therapeutics (NASDAQ:SRPT) shares to $110 from the previous $182, while maintaining an Overweight rating on the stock. The stock, currently trading at $55.37, has declined nearly 58% over the past six months. The revision follows a survey of neurologists that indicated potential impacts on the sales of Sarepta’s drug Elevidys due to a patient death.
The survey, which involved 20 neurologists, aimed to assess the potential implications of the recent safety update regarding Elevidys on prescribing patterns. It also sought to gauge provider sentiment and the market outlook for the drug. According to the survey results, while 40% of the neurologists did not foresee an impact from the patient death, 60% indicated that the safety event would affect their prescribing decisions for Elevidys. According to InvestingPro data, Sarepta maintains strong financial health with a ’GOOD’ overall score and liquid assets exceeding short-term obligations.
The analysts at Piper Sandler have consequently lowered their sales estimates for Elevidys. They project an average decrease of 14% for ambulatory use and a 24% reduction for non-ambulatory use for the remainder of 2025 and the full year of 2026. Despite the decreased demand forecast, Piper Sandler remains optimistic about Sarepta’s valuation, noting that the company’s shares are trading at approximately 2 times the price-to-sales ratio on the estimated product revenue for 2025, which they believe suggests the stock is undervalued.
The adjustment in the price target reflects the analysts’ tempered expectations for Elevidys sales in the wake of the safety update and its potential impact on the drug’s market performance. Piper Sandler’s maintained Overweight rating indicates they still see a positive outlook for Sarepta Therapeutics despite the current challenges.
In other recent news, Sarepta Therapeutics has received approval from the FDA to advance its gene therapy trials for various subtypes of limb-girdle muscular dystrophy (LGMD). The company has completed enrollment for several studies, including a phase 3 clinical trial for LGMD type 2E/R4, with plans to submit a Biologics License Application in 2025. Meanwhile, Wells Fargo (NYSE:WFC) initiated coverage on Sarepta with an Overweight rating and a price target of $115, citing confidence in the company’s Duchenne muscular dystrophy (DMD) treatments, particularly the gene therapy ELEVIDYS. Guggenheim Securities, however, reduced its price target to $112 while maintaining a Buy rating due to concerns about the uptake of ELEVIDYS and regulatory uncertainties. Oppenheimer adjusted its price target to $184, retaining an Outperform rating, and noted positive insights from a neurologist on ELEVIDYS despite recent challenges. H.C. Wainwright kept a Neutral rating with a $75 price target, highlighting the temporary clinical hold on ELEVIDYS trials in Europe following a patient death. These developments reflect ongoing evaluations and market expectations surrounding Sarepta’s therapeutic offerings.
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