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Investing.com - H.C. Wainwright raised its price target on Sarepta Therapeutics (NASDAQ:SRPT) to $5.00 from $0 while maintaining a Sell rating on the stock. The company’s shares have declined nearly 88% over the past six months, with current trading at $13.86, significantly below its 52-week high of $150.48.
The firm cited "tempered uptake in ambulatory DMD" following a series of reputational challenges to the company’s ELEVIDYS franchise. According to InvestingPro data, these challenges come amid concerning fundamentals, with the company burning through cash and seven analysts recently revising earnings estimates downward.
H.C. Wainwright acknowledged that its previous $0 price target was "not feasible" with ELEVIDYS back on the market in the ambulatory setting, leading to the addition of the ambulatory DMD opportunity back into its model, though "in a highly reduced capacity."
The firm now expects quarterly ELEVIDYS sales to align with management’s "stress test" scenario levels of $500 million annually, translating to quarterly sales in the $120-$130 million range.
Despite the price target increase, H.C. Wainwright maintained that Sarepta stock is "highly overvalued at $20 per share" and reiterated its Sell rating.
In other recent news, Sarepta Therapeutics announced that the U.S. Food and Drug Administration has lifted the pause on its Duchenne muscular dystrophy gene therapy, Elevidys, allowing the company to resume shipments for ambulatory patients. This decision follows a rapid safety review by the FDA, which had initially suggested the pause. In light of this development, JPMorgan upgraded Sarepta Therapeutics’ stock from Underweight to Neutral, setting a price target of $24.00. Meanwhile, Bernstein initiated coverage on Sarepta with a Market Perform rating and a $13.00 price target. However, H.C. Wainwright maintained its Sell rating with a $0 target, citing recent setbacks, including patient deaths and regulatory challenges. Additionally, Sarepta made a $100 million milestone payment to Arrowhead Pharmaceuticals (NASDAQ:ARWR) after reaching an enrollment target in a clinical study. These recent developments highlight significant changes in Sarepta’s financial and regulatory landscape.
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