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On Wednesday, TD Cowen analysts revised their outlook on Sarepta Therapeutics (NASDAQ:SRPT), reducing the price target to $137.00 from the previous $203.00, while still recommending a Buy rating for the stock. The adjustment follows Sarepta’s announcement of lower-than-expected revenue for Elevidys in the first quarter of 2025 and a reduction in the full-year revenue guidance. The stock, which has declined over 61% year-to-date, is currently showing signs of being undervalued according to InvestingPro analysis, with 13 additional real-time insights available to subscribers.
Sarepta reported that Elevidys revenue for the first quarter amounted to $375 million, which did not meet the forecasted $444 million estimated by analysts and the consensus of $414 million. The shortfall was attributed to hesitation among physicians and patients after a patient death associated with Elevidys, alongside administrative delays and impacts from a severe flu season. Despite recent challenges, the company maintains strong fundamentals with an InvestingPro Financial Health Score rated as "GREAT" and a current ratio of 4.2, indicating solid liquidity.
In response to these challenges, Sarepta has revised its total product revenue guidance for the fiscal year 2025, lowering the range from $2.9-$3.1 billion to $2.3-$2.6 billion. Despite the reduction, TD Cowen expressed confidence that the new targets are still attainable.
Furthermore, Sarepta has provided guidance for the second quarter, anticipating that Elevidys revenue will be less than 20% lower than the first quarter. The company also increased its non-GAAP operating expense (OpEx) guidance for the fiscal year 2025 to between $1.8 billion and $2.2 billion.
The adjustments to Sarepta’s financial guidance and the revised price target from TD Cowen reflect the immediate impact of the recent developments on the company’s outlook. Despite the lowered expectations, the firm’s sustained Buy rating indicates a continued positive long-term view on Sarepta’s stock performance.
In other recent news, Sarepta Therapeutics reported its first-quarter 2025 earnings, revealing a significant earnings per share (EPS) loss of $3.42, contrary to the expected profit of $1.96. Despite this, the company exceeded revenue forecasts, achieving $774.9 million against the projected $695.9 million. Sarepta has adjusted its full-year revenue guidance to a range of $2.3 to $2.6 billion. H.C. Wainwright analysts have revised their financial outlook for Sarepta, lowering the price target from $75 to $40 and maintaining a Neutral rating due to slow sales of the ELEVDIYS product. This adjustment follows the company’s report of first-quarter 2025 revenues for ELEVDIYS at $375 million, which was below the consensus estimate of $421.6 million. Analysts have also reduced their revenue forecast for ELEVDIYS in 2025 to $1.4 billion, down from the previously anticipated $1.9 billion. Sarepta’s revised guidance reflects ongoing challenges, including administrative delays and safety concerns in its gene therapy processes.
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