Analyst Yigal Nochomovitz of Citi maintained a Sell rating on Sarepta Therapeutics, retaining the price target of $14.00.
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Yigal Nochomovitz has given his Sell rating due to a combination of factors related to Sarepta Therapeutics’ current challenges with regulatory expectations. The FDA’s recent feedback on a similar therapeutic program by another company suggests that more stringent immunomodulation requirements might be necessary for Sarepta’s Elevidys, which is currently on voluntary hold for non-ambulatory patients. This indicates potential regulatory hurdles that could impact the company’s ability to advance its treatments effectively.
Furthermore, the comparison with a different AAV serotype in another program highlights uncertainties in the development process for Sarepta’s therapies. These factors contribute to a cautious outlook, with an expected share price decline of 30.6%, leading to the Sell rating. The high-risk nature of the stock, coupled with these regulatory challenges, suggests potential downside in the short term, which is reflected in the analyst’s recommendation.
According to TipRanks, Nochomovitz is a 4-star analyst with an average return of 5.8% and a 41.84% success rate. Nochomovitz covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Arcturus Therapeutics, and Travere Therapeutics.
In another report released yesterday, Bank of America Securities also reiterated a Sell rating on the stock with a $17.00 price target.