Analyst Mitchell Kapoor of H.C. Wainwright reiterated a Sell rating on Sarepta Therapeutics, retaining the price target of $10.00.
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Mitchell Kapoor has given his Sell rating due to a combination of factors impacting Sarepta Therapeutics. One of the primary reasons is the significant decline in ELEVIDYS revenues during the second quarter of 2025, which fell short of both the company’s and market expectations. This decline suggests that the peak revenue levels for ELEVIDYS, particularly in the U.S. market for Duchenne muscular dystrophy, may have already been reached. Additionally, there is skepticism about the company’s ability to achieve its projected annual revenue floor, raising concerns about future financial performance.
Another critical factor influencing the Sell rating is the narrowing market for ELEVIDYS, particularly due to its limited use in non-ambulatory DMD patients, who make up a substantial portion of the target population. The anticipated black box warning related to liver risks further exacerbates the situation, potentially deterring physicians from prescribing the drug. This warning, coupled with recent adverse events, has led to increased caution among prescribers and a decline in new patient starts, particularly in the non-ambulatory segment. These challenges collectively contribute to a pessimistic outlook for Sarepta’s future revenue growth and market penetration.