H.C. Wainwright upgraded Sarepta Therapeutics (NASDAQ: SRPT) from Sell to Neutral with a new 12-month price target of $75. The upgrade reflects Sarepta’s current valuation, which the firm now sees as fair, heading into the company’s first-quarter 2025 earnings report, scheduled for April 30.
While longer-term concerns remain, particularly around the commercial trajectory of its gene therapy ELEVIDYS in the second half of the year, analysts believe the upcoming Q1 print could meet expectations.
H.C. Wainwright anticipates that demand stemming from the June 2024 label expansion of ELEVIDYS to older and non-ambulatory patients will be reflected in Q1 performance. The firm also cited management’s previously positive tone, noting that Sarepta Therapeutics (NASDAQ: SRPT) typically has about four months of demand visibility, given the lead time required from patient enrollment to treatment.
However, the outlook beyond Q1 remains cautious. The recent report of a patient death due to acute liver injury has raised concerns around ELEVIDYS safety, which could weigh on future adoption. The firm expects this could lead to a quicker-than-expected slowdown in the product’s ramp, possibly as early as the second quarter, particularly in the absence of stronger efficacy data to support continued uptake.
Despite these uncertainties, H.C. Wainwright believes the stock is now appropriately valued, prompting the shift to a Neutral stance.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
