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Investing.com - Mizuho (NYSE:MFG) raised its price target on Sarepta Therapeutics (NASDAQ:SRPT) to $19.00 from $14.00 on Wednesday, while maintaining a Neutral rating on the stock. The company, currently valued at $1.74 billion, has seen its stock surge 18.84% in the past week, though InvestingPro data shows it remains significantly below its 52-week high.
The adjustment follows the FDA’s recommendation to remove Sarepta’s voluntary shipment pause of Elevidys for ambulatory patients, effectively allowing treatment to resume. Sarepta will resume shipping Elevidys to care sites imminently. This development comes as the company maintains strong liquidity, with a current ratio of 4.02 indicating robust ability to meet short-term obligations.
Mizuho increased its sales forecast for Elevidys for 2026 and beyond as a result of this development. The firm also removed royalty assumptions for ex-US sales following a negative CHMP recommendation on Roche’s marketing authorization.
The FDA appears willing to work with Sarepta on next steps in the safety labeling process and on a risk-mitigation approach for non-ambulatory patients, which Mizuho notes would represent upside to their current model.
Despite the higher price target resulting from increased Elevidys sales forecasts, Mizuho maintained its Neutral rating, citing a "relatively balanced risk/reward" outlook for the stock.
In other recent news, Sarepta Therapeutics has been at the center of significant developments following the FDA’s decision to lift a voluntary hold on its Elevidys therapy for ambulatory Duchenne muscular dystrophy (DMD) patients. This move came after the FDA completed an investigation into the death of an 8-year-old patient in Brazil, concluding it was unlikely related to the therapy. As a result, several financial firms have adjusted their outlooks on Sarepta. Oppenheimer upgraded the company’s stock rating from Perform to Outperform, raising its price target to $37.00 from $30.00. Similarly, Barclays (LON:BARC) upgraded its rating from Underweight to Equalweight and increased its price target to $22.00 from $10.00. Bernstein also raised its price target to $18.00 from $13.00, while TD Cowen adjusted its target to $17.00 from $12.00. These updates reflect the renewed optimism following the FDA’s clearance, highlighting the importance of Elevidys in Sarepta’s portfolio.
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