On Friday, BofA Securities increased its price target on Sarepta Therapeutics (NASDAQ:SRPT) shares to $213 from $166, while maintaining a Buy rating on the company's stock.
The revision follows the full approval of Sarepta's drug Elevidys for ambulatory Duchenne muscular dystrophy (DMD) patients aged four and older, and its accelerated approval for non-ambulatory DMD patients.
The approval of Elevidys by regulatory authorities surpassed the initial expectations, which had anticipated approval for ambulatory patients only. BofA Securities emphasizes the ongoing ENVISION trial, which may provide the necessary data to support full approval for non-ambulatory patients in the future.
Despite the company's expectation that the broad label for Elevidys will not immediately affect the launch's trajectory due to supply constraints, Bofa Securities believes that this development significantly enhances the drug's long-term market potential. Consequently, the firm has adjusted its risk-adjusted peak sales forecast for Elevidys up to $4 billion, a substantial increase from the previous $2.5 billion estimate.
The financial institution also notes that Elevidys now accounts for $139 per share in their price objective, up from the earlier $78 per share. BofA Securities reaffirms Sarepta Therapeutics as one of its top picks for 2024, reiterating its Buy rating and setting a price objective of $213.
In other recent news, Sarepta Therapeutics has been making noteworthy strides with its drug Elevidys, which has received expanded approval from the FDA for treating Duchenne muscular dystrophy (DMD) in patients aged four and older.
This approval has led to an increase in Sarepta's shares target by RBC Capital Markets from $142 to $182. Goldman Sachs also reiterated its Buy rating on Sarepta, projecting strong demand for Elevidys and forecasting peak revenue for the therapy to reach $2.6 billion by 2028.
Baird raised the price target on Sarepta Therapeutics to $200 from the previous $170 while maintaining an Outperform rating on the stock. This adjustment follows the recent announcement from Sarepta and the FDA regarding the full approval of Elevidys for ambulatory patients aged four or older, and its accelerated approval for non-ambulatory patients.
Citi maintained its Buy rating with a price target of $172, while Goldman Sachs also reiterated its Buy rating and projected peak revenue for Elevidys to reach $2.6 billion by 2028.
These recent developments underscore the significance of Elevidys' expanded approval and its potential impact on Sarepta's future revenue prospects. Sarepta is also in partnership with Roche for the global distribution of Elevidys, a move that further emphasizes the company's growth trajectory.
InvestingPro Insights
Following the positive outlook from BofA Securities on Sarepta Therapeutics, real-time data from InvestingPro reinforces the company's robust financial position. With a market capitalization of $11.67 billion, Sarepta is recognized for its significant revenue growth, which was 43.83% over the last twelve months as of Q1 2024. This growth is further exemplified by an impressive quarterly revenue growth of 63.1% in Q1 2024. Moreover, an InvestingPro Tip highlights that analysts predict the company will be profitable this year, aligning with BofA's optimistic projections.
Investors should note that despite Sarepta trading at a high earnings multiple with a P/E ratio of 684.5, the company's liquid assets exceed its short-term obligations, suggesting financial resilience. Additionally, the stock has experienced a large price uptick of 36.09% over the last six months, indicating strong market confidence. For those considering an investment in Sarepta, it's worth noting that the company operates with a moderate level of debt and does not pay a dividend to shareholders, potentially appealing to growth-focused investors.
For a deeper dive into Sarepta's financials and to access additional InvestingPro Tips, such as the company's high Price / Book multiple and its performance over the last decade, prospective investors can explore more on InvestingPro. There are 9 additional tips available that could provide further guidance on the investment potential of Sarepta Therapeutics. To enhance your investment strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.