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Investing.com - H.C. Wainwright reiterated its Sell rating and $10.00 price target on Sarepta Therapeutics (NASDAQ:SRPT) following the company’s preliminary second-quarter financial results. The stock, currently trading at $18.38, has experienced a dramatic 84.88% decline year-to-date, with analyst price targets ranging widely from $10 to $110.
Sarepta reported $282 million in ELEVIDYS net product revenue for the second quarter of 2025, slightly above H.C. Wainwright’s estimate of $281 million but below Street consensus of $290 million. The results represent a sequential decline of 25% compared to the first quarter of 2025. According to InvestingPro data, six analysts have recently revised their earnings estimates downward for the upcoming period.
H.C. Wainwright analyst Mitchell S. Kapoor noted that ELEVIDYS revenues declined meaningfully in the quarter, reinforcing the firm’s belief that peak U.S. revenues from this Duchenne muscular dystrophy (DMD) treatment have already occurred.
During its earnings call, Sarepta referenced a minimum "stress-test" threshold of $500 million in annual revenue for ELEVIDYS, which prompted significant investor questions about the assumptions behind this figure. While H.C. Wainwright does not expect revenues to fall to that level in the near term, the firm lowered its 2025 ELEVIDYS forecasts to $1.1 billion from $1.2 billion. Despite current challenges, InvestingPro analysis suggests the stock is undervalued at current levels, with strong liquidity indicated by a current ratio of 4.02. Get access to 8 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
Sarepta has indicated it expects a rebound in ELEVIDYS sales in the third quarter of 2025, though H.C. Wainwright does not anticipate a significant recovery. The company is not providing formal 2025 guidance but expects it may resume guidance for fiscal year 2026. Revenue is forecast to grow by 19% in the current fiscal year, though analysts don’t expect profitability this year.
In other recent news, Sarepta Therapeutics reported preliminary second-quarter financial results, revealing total net product revenue of $513 million. This includes $282 million from its gene therapy Elevidys and $231 million from RNA-based treatments. Sarepta has also announced a strategic restructuring plan, which involves cutting approximately 500 jobs, or 36% of its workforce, aiming for $400 million in annual cost savings. The company is focusing on its siRNA platform assets while maintaining its Duchenne muscular dystrophy portfolio.
The restructuring is part of a broader initiative to ensure long-term financial sustainability, with plans to meet its 2027 financial obligations. Mizuho (NYSE:MFG) has maintained an Outperform rating on Sarepta Therapeutics, citing reduced concerns about potential FDA market withdrawal of Elevidys. However, JPMorgan lowered its price target for Sarepta to $28 from $30, while maintaining an Overweight rating, pointing to a "valuation disconnect."
Additionally, the FDA is investigating reports of two deaths linked to Elevidys due to acute liver failure in non-ambulatory patients. Sarepta has agreed to the FDA’s request to include a black box warning for Elevidys related to acute liver injury and liver failure. The company is also temporarily pausing shipments of Elevidys for non-ambulant patients while developing enhanced safety protocols.
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