J.P. Morgan analyst Anupam Rama maintained a Buy rating on Sarepta Therapeutics today and set a price target of $28.00.
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Anupam Rama’s rating is based on a combination of factors that highlight the potential of Sarepta Therapeutics’ commercial franchise despite recent setbacks. The company has faced challenges, notably the significant decline in stock performance due to patient deaths associated with Elevidys. However, Rama emphasizes the valuation disconnect relative to the potential of Sarepta’s products, including PMOs and Elevidys, which justifies a long-term positive outlook.
Rama also notes that despite the current challenges, Elevidys is expected to play a significant role in the treatment landscape due to limited alternatives. The PMO franchise, comprising Exondys 51, Vyondys 53, and Amodys 45, is seen as underappreciated and could benefit from Elevidys’ challenges. Additionally, the potential for accelerated approval of competitors and the upcoming results from the ESSENCE study could impact future sales, but the current valuation already reflects these risks. Overall, the potential upside in Sarepta’s shares supports the Buy rating.
Rama covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Vera Therapeutics, and Neurocrine. According to TipRanks, Rama has an average return of -4.7% and a 41.73% success rate on recommended stocks.
In another report released on July 2, Mizuho Securities also reiterated a Buy rating on the stock with a $40.00 price target.