Citi analyst Yigal Nochomovitz maintained a Sell rating on Sarepta Therapeutics yesterday and set a price target of $14.00.
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Yigal Nochomovitz has given his Sell rating due to a combination of factors related to the safety and risk profile of Sarepta Therapeutics’ Elevidys. Despite the company’s efforts to be transparent about the safety concerns, the hospitalization rate due to Acute Liver Injury (ALI) remains significant at approximately 5-6%. Additionally, there have been two treatment-related fatalities, which further contribute to the perceived risk.
Moreover, the FAERS database’s limitations in accurately reflecting Elevidys’ safety profile and the absence of post-approval efficacy data from the EMBARK study add to the uncertainty. The return of Vinay Prasad to the FDA, who previously supported a marketing pause for the drug, also raises concerns about potential regulatory challenges. These factors collectively suggest a high-risk environment for Sarepta Therapeutics’ stock, leading to Nochomovitz’s Sell recommendation.
In another report released on August 15, Deutsche Bank also maintained a Sell rating on the stock with a $12.00 price target.