Sarepta Therapeutics (SRPT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Gil Blum from Needham reiterated a Buy rating on the stock and has a $166.00 price target.
Gil Blum has given his Buy rating due to a combination of factors related to the potential for label expansion of Sarepta Therapeutics’ product, Elevidys. Blum’s positive outlook hinges on the expectation of the FDA’s decision regarding the label expansion, which could occur before the scheduled date, indicating a favorable outcome. The analyst’s base case scenario, which anticipates the label to be extended to include patients of all ages who are ambulatory, could lead to a significant increase in the stock’s value, estimated at around 35%. This scenario is deemed the most likely and serves as a primary driver for the recommendation.
Furthermore, Blum’s analysis considers less likely scenarios, such as the label expansion to cover both nonambulatory and ambulatory patients, which he views as improbable due to the scarcity of data for nonambulatory individuals. On the downside, the expansion could be limited to a younger age group, specifically 4-7 year-olds. In the absence of any label expansion, a decrease in Elevidys sales is expected as the patient population diminishes. Despite these varied outcomes, Blum maintains a Buy rating reinforced by a clear price target, demonstrating confidence in the stock’s growth potential based on the anticipated FDA decisions and market dynamics.
In another report released today, Barclays also maintained a Buy rating on the stock with a $185.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SRPT in relation to earlier this year.
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Sarepta Therapeutics (SRPT) Company Description:
Sarepta Therapeutics, Inc. is a commercial-stage biopharmaceutical company, which is engaged in the discovery and development of therapeutics for the treatment of rare diseases. The company was founded on July 22, 1980 and is headquartered in Cambridge, MA.
