Leerink Partners analyst Joseph Schwartz maintained a Buy rating on Sarepta Therapeutics on July 16 and set a price target of $45.00.
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Joseph Schwartz has given his Buy rating due to a combination of factors that suggest a positive outlook for Sarepta Therapeutics. The company has announced significant organizational changes, including a strategic reorganization that involves cutting approximately 36% of its workforce and pausing the development of certain gene therapies. These measures are expected to result in substantial cost savings, projected to be around $400 million annually, which will help the company maintain financial stability and manage debt obligations.
Moreover, despite recent challenges, such as the second death associated with Elevidys treatment, the company has taken steps to mitigate risks, including updating the product label with a black box warning. The worst-case scenario of Elevidys being removed from the market has been avoided, providing some relief to the stock. With a focus on the siRNA platform and a projected minimum annual revenue opportunity of $1.4 billion from approved products, Schwartz views these developments as prudent moves that could help regain investor confidence and improve the company’s financial position.
In another report released yesterday, Scotiabank also maintained a Buy rating on the stock with a $80.00 price target.
SRPT’s price has also changed dramatically for the past six months – from $117.060 to $18.380, which is a -84.30% drop .