H.C. Wainwright analyst Mitchell Kapoor has reiterated their neutral stance on SRPT stock, giving a Hold rating on April 7.
Mitchell Kapoor has given his Hold rating due to a combination of factors surrounding Sarepta Therapeutics. One of the primary considerations is the limited commercial opportunity presented by the limb-girdle muscular dystrophy (LGMD) portfolio. Despite some positive developments in clinical trials for various LGMD subtypes, the total addressable market remains small, with less than 600 cases in the U.S., which does not significantly impact Sarepta’s overall valuation.
Another key factor influencing the Hold rating is the uncertainty surrounding the ELEVIDYS franchise. While there is potential for modest revenue growth, recent challenges, including a patient death and trial halts, have raised concerns about the safety and efficacy of ELEVIDYS. The anticipated demand from the June 2024 approval may provide some short-term financial benefits, but there is skepticism about achieving the projected growth targets. These uncertainties lead to a cautious stance, reflected in the Hold rating and a 12-month price target of $75 per share.
In another report released on April 7, Scotiabank also maintained a Hold rating on the stock with a $80.00 price target.
Based on the recent corporate insider activity of 52 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.