Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Freedom Broker upgraded Sarepta Therapeutics (NASDAQ:SRPT) from Hold to Buy and raised its price target to $37.00 from $14.00 on Monday. The upgrade comes despite the stock’s 85% decline over the past year, with analyst targets ranging widely from $5 to $80.
The upgrade follows the resumption of ELEVIDYS supply for ambulatory patients, which Freedom Broker analyst Ilya Zubkov noted improves the outlook for Sarepta’s mid-term revenue trajectory. The company has demonstrated strong revenue growth of 65% over the last twelve months, reaching $2.48 billion.
The research firm highlighted that Sarepta is shifting its R&D focus from LGMD to siRNA-based therapies developed in partnership with Arrowhead Therapeutics.
Freedom Broker pointed to continued availability of ELEVIDYS, stability in the PMO portfolio, and a strong cash position as factors supporting Sarepta’s ability to meet debt obligations on schedule.
The significant price target increase from $14 to $37 was driven by upward revisions to Freedom Broker’s revenue outlook for the biotechnology company.
In other recent news, Sarepta Therapeutics reported strong second-quarter earnings that exceeded analyst expectations. The company achieved adjusted earnings of $2.02 per share, significantly surpassing the analyst consensus of $0.70. Revenue reached $611.1 million, exceeding expectations of $532.86 million and marking a 68% increase from the same quarter last year. Net product revenues totaled $513.1 million, reflecting a 42% year-over-year increase. Sarepta has also resumed Elevidys infusions after a temporary pause, with commercial dynamics expected to normalize by the fourth quarter. Wells Fargo (NYSE:WFC) raised its price target for Sarepta to $50, citing progress in its siRNA programs developed in collaboration with Arrowhead Pharmaceuticals (NASDAQ:ARWR). The SRP-1001 Phase 1/2 study for facioscapulohumeral muscular dystrophy has fully enrolled three single ascending dose cohorts, with preliminary data anticipated in the second half of 2025. BMO Capital reiterated its Market Perform rating on Sarepta with a $50 price target following the company’s earnings report.
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