Wednesday, Piper Sandler maintained its Overweight rating and $205.00 stock price target for Sarepta Therapeutics (NASDAQ:SRPT), a biopharmaceutical company. The firm's stance comes after discussions with a key opinion leader (KOL) in the Duchenne muscular dystrophy (DMD) field regarding the expanded use of Sarepta's drug Elevidys™.
The KOL anticipates an increase in prescriptions due to the expanded label and expects that reimbursement will generally not pose a problem, except for some patients who were not part of the clinical trial. However, the KOL noted that the main hurdles are likely to be related to patient volume and the need for follow-up, suggesting that these could be managed with additional resources.
Sarepta's Elevidys™ has been a subject of interest due to its role in treating DMD, a genetic disorder characterized by progressive muscle degeneration. The expanded label allows for broader use in the patient population, which is a significant development for those affected by the disease.
The positive outlook from Piper Sandler aligns with the broader anticipation of increased prescribing practices by medical professionals in light of the label expansion. The firm's reiteration of the Overweight rating underscores confidence in Sarepta's market position and the potential for its DMD treatment.
Sarepta Therapeutics continues to focus on addressing the challenges of DMD, and with the support of medical experts, it aims to improve the accessibility and effectiveness of its treatments for patients in need.
In other recent news, Sarepta Therapeutics has been the focus of several analyst notes due to significant developments. The FDA granted expanded approval for the company's drug Elevidys, leading to a flurry of revised outlooks and raised price targets.
Citi downgraded Sarepta from Buy to Neutral, setting a new price target at $176. Despite this, they believe Sarepta's valuation is now fitting given the recent developments. Mizuho Securities, maintaining a Buy rating, increased its price target to $200, citing potential for Elevidys sales to surpass long-term consensus estimates.
BofA Securities raised its price target to $213, highlighting the drug's potential market reach after the full approval of Elevidys for ambulatory Duchenne muscular dystrophy patients. Meanwhile, Baird raised its price target to $200, expressing optimism about the drug's prospects following the FDA's approval.
Goldman Sachs (NYSE:GS) reiterated its Buy rating, projecting 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.
InvestingPro Insights
In light of Piper Sandler's recent Overweight rating and $205.00 price target for Sarepta Therapeutics, InvestingPro data and tips provide further context for investors considering the company's shares. Sarepta's market capitalization stands at $14.94 billion, reflecting its significant presence in the biopharmaceutical industry. The company's revenue has shown impressive growth, with a 43.83% increase over the last twelve months as of Q1 2024, and a staggering 63.1% quarterly revenue growth in Q1 2024.
InvestingPro Tips suggest that Sarepta's net income is expected to grow this year, and three analysts have revised their earnings upwards for the upcoming period, indicating potential optimism in the company's financial performance. Moreover, Sarepta has demonstrated a strong return over the last week, month, and three months, with a 34.5% one-week price total return as of the most recent data point.
For investors looking for more in-depth analysis, there are additional InvestingPro Tips available for Sarepta Therapeutics at https://www.investing.com/pro/SRPT. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these insights, investors can make more informed decisions regarding their interest in Sarepta as it continues to navigate the expanding market for DMD treatments.
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