US stock futures flounder amid tech weakness, Fed caution
On Wednesday, RBC Capital Markets adjusted its outlook on Sarepta Therapeutics (NASDAQ:SRPT) shares, reducing the price target from $87.00 to $58.00 while maintaining a Sector Perform rating. The stock, currently trading at $37.56, has fallen over 65% in the past year and is near its 52-week low. The adjustment comes in response to issues surrounding Sarepta’s gene therapy product, Elevidys, which experienced setbacks due to a patient death, administrative hurdles, and production capacity challenges.
The company has consequently revised its revenue guidance downward, signaling a potential fundamental bottom for the stock price according to the RBC analyst. Despite the challenges, InvestingPro data shows Sarepta maintains strong fundamentals with a current ratio of 4.2 and impressive revenue growth of 53% over the last twelve months. The patient death and the resulting complications have caused Sarepta’s shares to falter as the market digests the impact of these developments on the company’s financial outlook.
The analyst from RBC Capital expressed caution regarding the investment in Sarepta’s stock at this juncture. The uncertainty arising from the regulatory environment and its effect on Sarepta’s ongoing and future programs was highlighted as a significant factor. This added regulatory risk is seen as a deterrent to investing until there is more clarity on the situation.
The lowered price target reflects updates to the financial model in light of the recent events affecting Elevidys’ sales trajectory. Sarepta Therapeutics, which is listed on NASDAQ under the ticker SRPT, is now faced with navigating the repercussions of these challenges as it seeks to regain its footing in the gene therapy market.
Investors are now observing how Sarepta Therapeutics will address these hurdles and the strategies it will employ to mitigate the impact on its business operations and stock value. According to InvestingPro, the stock appears undervalued based on its Fair Value analysis, with 12 additional exclusive ProTips available to subscribers. For deeper insights, investors can access the comprehensive Pro Research Report, part of InvestingPro’s coverage of 1,400+ US stocks.
In other recent news, Sarepta Therapeutics has reported a significant earnings miss for the first quarter of 2025, posting a loss of $3.42 per share against a forecasted profit of $1.96. Despite exceeding revenue expectations with $774.9 million, the company adjusted its full-year revenue guidance to between $2.3 and $2.6 billion, down from the previous range of $2.9 to $3.1 billion. Analysts from TD Cowen and H.C. Wainwright have revised their price targets for Sarepta, cutting them to $137 and $40 respectively, while maintaining Buy and Neutral ratings. This follows Sarepta’s announcement of lower-than-expected revenue for its Elevidys product, attributed to physician hesitation and administrative delays. Cantor Fitzgerald also reduced its price target for the company to $81, citing safety concerns and competitive pressures affecting Elevidys’ uptake. Despite these challenges, Sarepta’s leadership remains confident in the long-term potential of their gene therapy offerings. The company has taken steps to address administrative challenges and is working to ensure better patient and physician education regarding their therapies.
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