In a report released yesterday, Yanan Zhu from Wells Fargo reiterated a Buy rating on Sarepta Therapeutics, with a price target of $65.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Yanan Zhu’s rating is based on several key developments at Sarepta Therapeutics that suggest a positive outlook for the company’s stock. The recent update to the ELEVIDYS label by the FDA, which includes a black box warning for liver-related issues, is seen as a resolution to previous regulatory concerns, thereby maintaining the opportunity for the drug in the ambulatory population. This update is considered favorable as it reduces the risk of unexpected regulatory actions that could have negatively impacted the stock.
Additionally, Sarepta’s strategic restructuring plan, which aims to significantly reduce expenses by approximately $900 million through 2027, is expected to strengthen the company’s financial position. The restructuring involves a workforce reduction and a focus on prioritizing their pipeline, particularly in rare genetic diseases, which should help sustain profitability. These factors, combined with the company’s strong revenue performance and cash position, underpin Zhu’s Buy rating, reflecting confidence in Sarepta’s future growth and stability.
In another report released today, Barclays also maintained a Buy rating on the stock with a $32.00 price target.