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Investing.com - Piper Sandler raised its price target on Sarepta Therapeutics (NASDAQ:SRPT) to $15.00 from $11.00 on Tuesday, while maintaining a Neutral rating on the stock. The company’s shares, which have declined nearly 88% over the past six months, are currently showing signs of being undervalued according to InvestingPro analysis.
The adjustment follows news that the FDA has lifted the voluntary hold on Sarepta’s Elevidys treatment in the ambulatory setting after determining that the death of an 8-year-old ambulatory boy was unrelated to the therapy.
Sarepta will resume shipments of Elevidys for ambulatory patients immediately, according to Piper Sandler’s research note.
The FDA will continue to maintain the hold for Elevidys in the non-ambulatory setting while it investigates two other fatalities, the research firm noted.
Piper Sandler updated its financial model to reflect the resumed dosing in the ambulatory population but expects "a modest impact to sales due to potential patient / provider hesitancy." Despite revenue growth of 59% in the last twelve months, analysts have recently revised their earnings expectations downward, according to InvestingPro data.
In other recent news, Sarepta Therapeutics announced that the U.S. Food and Drug Administration (FDA) has authorized the company to resume shipments of its Duchenne muscular dystrophy gene therapy, ELEVIDYS, for ambulatory patients. This decision follows a voluntary pause by Sarepta to allow the FDA to conduct a safety review, which the agency completed swiftly. In response to this development, JPMorgan upgraded Sarepta Therapeutics from Underweight to Neutral, setting a price target of $24.00. Similarly, BMO Capital raised its price target for Sarepta to $50.00 from $25.00 while maintaining a Market Perform rating.
H.C. Wainwright also adjusted its price target for Sarepta, increasing it to $5.00 from $0, although it kept a Sell rating due to challenges in the ELEVIDYS franchise. Bernstein initiated coverage on Sarepta with a Market Perform rating and a $13.00 price target, citing significant challenges, including a 90% stock decline year-to-date. The FDA’s recent recommendation to remove the clinical hold on ELEVIDYS played a critical role in these analyst updates. Sarepta’s decision to pause shipments was initially influenced by multiple patient deaths and FDA pressure. These developments reflect ongoing challenges and opportunities for Sarepta Therapeutics in the market.
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