Analyst Tazeen Ahmad from Bank of America Securities maintained a Sell rating on Sarepta Therapeutics and keeping the price target at $18.00.
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Tazeen Ahmad has given his Sell rating due to a combination of factors affecting Sarepta Therapeutics. The recent update to the Elevidys label, which now includes a boxed warning for acute liver injury and failure, alongside enhanced monitoring requirements, has raised concerns about the drug’s market uptake. This label change aligns with previous expectations following adverse events, and while it provides clarity for its continued use in younger patients, it suggests a limited market potential moving forward.
Furthermore, the removal of the non-ambulatory indication from the label has impacted the perceived value of the drug, as dosing was previously paused for this patient group. Although Sarepta plans to conduct further studies to potentially resume dosing for non-ambulatory patients, the timeline and regulatory approval remain uncertain. Additionally, while upcoming data updates for other therapies in their pipeline could offer potential upside, the competitive landscape in these areas poses challenges. These factors contribute to the underperformance rating with a price objective of $18.
According to TipRanks, Ahmad is a 3-star analyst with an average return of 1.8% and a 54.71% success rate. Ahmad covers the Healthcare sector, focusing on stocks such as Ascendis Pharma, Incyte, and BioNTech SE.
In another report released on November 7, Citi also reiterated a Sell rating on the stock with a $8.00 price target.