Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - TD Cowen has reiterated its Hold rating and $17.00 price target on Sarepta Therapeutics (NASDAQ:SRPT), whose shares have fallen over 85% in the past year, following the company’s first Duchenne muscular dystrophy (DMD) patient community webinar co-sponsored by UCLA’s Center for DMD. According to InvestingPro analysis, the stock appears undervalued at current levels, with analyst targets ranging from $5 to $80.
During the webinar, Sarepta disclosed detailed liver adverse event data for its Elevidys treatment, revealing that ambulatory and non-ambulatory patients face similar risks of acute liver injury (ALI) in clinical settings. However, commercial non-ambulatory patients showed higher risk for liver hospitalizations and acute liver failure in the post-marketing environment. Despite these challenges, InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.89, though it’s currently burning through cash.
The company indicated that an upcoming black box warning update to Elevidys’ label will include an ALI warning for both ambulatory and non-ambulatory patients, addressing safety concerns that have emerged during the treatment’s use.
Sarepta also announced that initial data on sirolimus pre-treatment, which may help mitigate liver-related side effects, will be available in the first half of 2026, providing a potential timeline for addressing these safety challenges.
Key opinion leaders at the webinar discussed evolving risk-benefit conversations with patients, potential sirolimus use across patient groups, and considerations for dosing additional ambulatory patients with Elevidys. With revenue growth of 65% in the last twelve months and an expected 10% growth for the upcoming year, investors can access deeper insights and 10 additional ProTips through InvestingPro’s comprehensive research reports.
In other recent news, Sarepta Therapeutics reported strong second-quarter earnings, significantly surpassing analyst expectations. The company announced adjusted earnings of $2.02 per share, well above the anticipated $0.70, with revenue reaching $611.1 million, exceeding the forecasted $532.86 million. This marks a 68% increase from the same quarter last year, with net product revenues totaling $513.1 million, up 42% year-over-year. Sarepta also resumed shipments of ELEVIDYS for ambulatory Duchenne muscular dystrophy patients, following a temporary pause.
In related developments, Freedom Broker upgraded Sarepta’s stock rating from Hold to Buy, citing the resumption of ELEVIDYS supply as a positive factor for the company’s mid-term revenue outlook. BMO Capital maintained its Market Perform rating with a $50 price target, noting that commercial dynamics are expected to normalize by the fourth quarter. Wells Fargo (NYSE:WFC) also raised its price target for Sarepta to $50, maintaining an Overweight rating and highlighting progress in Sarepta’s siRNA programs in partnership with Arrowhead Pharmaceuticals (NASDAQ:ARWR). These recent developments reflect a period of growth and positive adjustments for Sarepta Therapeutics.
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