Sarepta stock target cut to $40 by H.C. Wainwright on slow sales

Published 07/05/2025, 13:08
Sarepta stock target cut to $40 by H.C. Wainwright on slow sales

On Wednesday, H.C. Wainwright analysts adjusted their financial outlook for Sarepta Therapeutics (NASDAQ:SRPT), reducing the price target on the company’s shares to $40 from the previous $75, while maintaining a Neutral rating. The stock, which InvestingPro analysis indicates is currently trading near its 52-week low of $46.52, appears significantly undervalued based on comprehensive Fair Value calculations. The revision follows Sarepta’s report of first-quarter 2025 revenues for its product ELEVDIYS, which totaled $375 million. This figure represents a 2% decrease from the previous quarter and falls below the consensus estimates of $421.6 million projected by analysts.

The analysts believe that ELEVDIYS revenues are showing signs of plateauing in 2025. In response to the observed slowdown, Sarepta has revised its financial guidance downwards. Consequently, H.C. Wainwright has also lowered its revenue forecast for ELEVDIYS in 2025 to $1.4 billion, a decrease from the previously anticipated $1.9 billion. This aligns with the lower end of the company’s revised guidance, which sets net product revenues at $2.3 billion for the year. Despite these concerns, InvestingPro data shows the company maintains strong financial health with a current ratio of 4.2 and operates with moderate debt levels.

The analysts have further adjusted their expectations for the long-term penetration rates of ELEVDIYS, anticipating a more modest uptake due to recent developments affecting the franchise. In addition, H.C. Wainwright has increased the discount rate applied to Sarepta’s shares from 11% to 12%, reflecting heightened regulatory risks.

These changes underpin the revised 12-month price target of $40 for Sarepta Therapeutics’ shares, a significant reduction from the prior target of $75. The revised target reflects the firm’s cautious stance on the company’s financial performance and market potential moving forward. For deeper insights into Sarepta’s valuation and growth prospects, including 13 additional ProTips and comprehensive financial metrics, investors can access the detailed Pro Research Report available on InvestingPro.

In other recent news, Sarepta Therapeutics reported its first-quarter 2025 earnings, revealing a significant earnings per share (EPS) miss. The company posted a loss of $3.42 per share, contrasting sharply with the forecasted profit of $1.96. However, Sarepta exceeded revenue expectations, generating $774.9 million compared to the anticipated $695.9 million. Despite the revenue beat, the EPS shortfall raised investor concerns. Sarepta has revised its full-year revenue guidance to a range of $2.3 to $2.6 billion. The company cited ongoing administrative challenges in its gene therapy processes as a contributing factor to the earnings miss. Additionally, Sarepta faces competition and market saturation in the gene therapy sector. The company remains optimistic about future revenue growth, expecting a pickup in the latter half of the year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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