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Investing.com - BMO Capital raised its price target on Sarepta Therapeutics (NASDAQ:SRPT) to $50.00 from $25.00 on Tuesday, while maintaining a Market Perform rating on the stock. According to InvestingPro data, the stock currently trades at $13.86, significantly below its 52-week high of $150.48, with analysts maintaining an overall neutral stance.
The price target adjustment follows the FDA’s recommendation to remove the clinical hold on Elevidys in ambulatory patients, which drove approximately 50% upside in Sarepta’s stock in after-hours trading. The company’s financial health score stands at "FAIR" according to InvestingPro analysis, with current ratio of 4.02x indicating strong short-term liquidity.
BMO Capital noted that the FDA’s decision suggests the fatality risk in ambulatory patients, with approximately zero incidents in 800 patients so far, appears largely independent of the risk in non-ambulatory patients.
The firm highlighted that Sarepta’s financial challenges, including near-term payments to ARWR and Catalent (NYSE:CTLT) expected by year-end 2025, and long-term debt of approximately $1.1 billion due in 2027, are now partially alleviated by this development.
Despite maintaining its Market Perform rating, BMO Capital indicated that the risk/reward profile for Sarepta Therapeutics is "starting to shift to the upside," though it expects some physician and patient hesitancy toward Elevidys treatment in the near term.
In other recent news, Sarepta Therapeutics has experienced several significant developments. The company announced that the U.S. Food and Drug Administration (FDA) has lifted the pause on shipments of its Duchenne muscular dystrophy gene therapy, ELEVIDYS, for ambulatory patients. This decision follows a rapid safety assessment by the FDA, which had initially suggested a voluntary pause. In light of this development, JPMorgan upgraded Sarepta’s stock rating from Underweight to Neutral, setting a new price target of $24.00. Meanwhile, Bernstein SocGen Group initiated coverage with a Market Perform rating and a $13.00 price target, highlighting ongoing challenges for the company. H.C. Wainwright, however, reiterated a Sell rating and a $0 price target, citing multiple setbacks, including patient deaths and the removal of ELEVIDYS from the U.S. market. The firm also noted a negative recommendation from the European Medicines Agency regarding EU approval. Despite these challenges, H.C. Wainwright raised its price target to $5.00 from $0, maintaining a Sell rating. These developments come amid Sarepta’s efforts to navigate reputational challenges and regulatory scrutiny.
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