On Monday, Piper Sandler upheld its Overweight rating and $205.00 price target for Sarepta Therapeutics (NASDAQ:SRPT) stock. The firm's stance comes after a period of heightened investor interest in Sarepta following the expanded FDA approval of its drug Elevidys on June 20th.
The drug's launch dynamics have been closely watched, especially as Sarepta's shares saw an approximate 8% decline since the FDA's decision. This movement is attributed to the market's focus on the sales trajectory that the drug's broader label might influence.
Piper Sandler noted that the recent retracement in Sarepta's share price reflects investor sentiment tied to the sales expectations of Elevidys under its new, expanded label.
The firm's confidence in the stock is supported by the perceived strong interest in Elevidys from both ambulatory and non-ambulatory patients. This interest was evident during the Parent Project Muscular Dystrophy (PPMD) Annual Meeting, which Piper Sandler attended virtually.
The meeting brought together key experts and families affected by Duchenne Muscular Dystrophy (DMD) to discuss the latest developments in the treatment of the disease.
The firm highlighted the discussions from the PPMD Annual Meeting, which focused on the significant anticipation for Elevidys among the DMD community. Experts at the meeting also addressed the necessary steps that treatment sites should take to ensure equitable access to the drug. The attention to Elevidys' distribution and accessibility indicates a proactive approach to its integration into the DMD treatment landscape.
Piper Sandler's reiteration of the Overweight rating suggests a continued positive outlook for Sarepta Therapeutics. The firm's analysis appears to be grounded in recent developments and feedback from the DMD community, which may play a crucial role in the drug's commercial success.
The maintained price target of $205.00 by Piper Sandler reflects the firm's assessment of Sarepta's market potential, despite the recent fluctuation in its stock price post-FDA approval. The ongoing interest from investors and the medical community alike seems to contribute to a stable view of the company's prospects in the near term.
In other recent news, Sarepta Therapeutics has experienced significant developments regarding its drug Elevidys. The FDA granted an expanded approval to Elevidys, enabling it to treat both ambulatory and non-ambulatory Duchenne muscular dystrophy patients aged four and older.
This approval has led to a series of revisions and raised price targets for Sarepta by various firms. BMO Capital maintained an Outperform rating, while Citi downgraded Sarepta's shares from Buy to Neutral but raised the price target to $176.
Mizuho Securities increased its price target to $200, and BofA Securities raised its price target to $213. Baird also lifted its price target to $200, following the FDA's endorsement of the drug's safety and efficacy.
Sarepta is also in partnership with Roche for the global distribution of Elevidys, further emphasizing the company's growth trajectory. These recent developments underscore the significance of Elevidys' expanded approval and its potential impact on Sarepta's future revenue prospects.
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