Cautious Hold Rating on Arrowhead Pharmaceuticals Amid Uncertainty in Sarepta Partnership

Analyst David Lebowitz of Citi maintained a Hold rating on Arrowhead Pharmaceuticals, retaining the price target of $17.00.

David Lebowitz’s rating is based on several factors influencing Arrowhead Pharmaceuticals’ financial outlook. The company’s collaboration with Sarepta Therapeutics has brought in significant upfront cash and promises of future milestone payments. However, there are concerns regarding Sarepta’s ability to meet these payment obligations due to its recent restructuring and expected revenue decline.
This uncertainty could affect Arrowhead’s cash flow projections and its guidance on cash runway through 2028. Additionally, the potential for Sarepta to terminate the agreement or face financial difficulties adds to the risk profile. These factors contribute to a cautious outlook, justifying the Hold rating.

Lebowitz covers the Healthcare sector, focusing on stocks such as Alnylam Pharma, Incyte, and Blueprint Medicines. According to TipRanks, Lebowitz has an average return of 4.4% and a 55.81% success rate on recommended stocks.

In another report released on July 19, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $17.00 price target.