Bank of America just raised its EUR/USD forecast
On Thursday, RBC Capital Markets adjusted its outlook on Sarepta Therapeutics (NASDAQ:SRPT), reducing the price target from $165.00 to $161.00, while reaffirming an Outperform rating for the biopharmaceutical company. Currently trading at $108.20, near its 52-week low of $101.15, the stock has caught analysts’ attention. The analyst at RBC Capital, Brian Abrahams, maintained a positive stance on the company, despite the slight decrease in the price target. According to InvestingPro, five analysts have recently revised their earnings estimates upward for the upcoming period.
Sarepta Therapeutics, which had pre-reported its figures, reiterated its net product guidance for the year 2025, including projections for its product Elevidys. The company’s impressive revenue growth of 48.45% in the last twelve months supports this outlook. Abrahams noted that the guidance provided by Sarepta was expected and likely conservative. He indicated a strong possibility for the company to surpass the $2.18 billion sales forecast for Elevidys, which is higher than the consensus estimate of $2.1 billion.
The analyst also addressed concerns regarding a potential bolus effect, suggesting that the company’s expectations for quarter-over-quarter growth should help alleviate such worries. This bolus effect had been a point of pressure on the stock, according to the analyst.
Abrahams highlighted the underappreciation of Sarepta’s pipeline, pointing to anticipated positive data for Limb-girdle muscular dystrophy type 2E (LGMD2E) expected in the first half of 2025. He believes that this upcoming data release will draw greater attention to Sarepta’s broader potential in LGMD treatments and siRNA assets.
In summary, Abrahams’ analysis suggests that Sarepta Therapeutics shares are fundamentally undervalued. The adjustment to the price target is based on model updates, as per the analyst’s comments. With analyst targets ranging from $75 to $215, and a P/E ratio of 86, investors seeking deeper insights can access comprehensive valuation metrics and 14 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Sarepta Therapeutics reported impressive financial results for the fourth quarter of 2024, with earnings per share (EPS) of $1.9, surpassing the forecasted $1.54. The company achieved revenues of $658.4 million, exceeding the anticipated $589.45 million. This marks a 75% year-over-year revenue growth, largely driven by the success of Alevitus, which saw a 112% sequential sales increase. Sarepta’s guidance for 2025 indicates a potential 70% increase in net product revenue, with projections between $2.9 billion and $3.1 billion. Mizuho (NYSE:MFG) Securities recently adjusted their outlook on Sarepta, reducing the price target from $195.00 to $190.00, while maintaining an Outperform rating. Despite the reduction, Mizuho analysts expressed continued confidence in Sarepta, highlighting the growth potential for Elevidys, a treatment for Duchenne muscular dystrophy. They also noted significant opportunities in Sarepta’s limb-girdle muscular dystrophy platform and its partnership with Arrowhead Pharmaceuticals (NASDAQ:ARWR). These developments underscore Sarepta’s strategic focus on genetic medicine and its robust performance in the gene therapy space.
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