Sarepta Therapeutics, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Tazeen Ahmad from Bank of America Securities maintained a Sell rating on the stock and has a $10.00 price target.
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Tazeen Ahmad has given his Sell rating due to a combination of factors impacting Sarepta Therapeutics. The recent decision by the FDA to recommend resuming dosing for ambulatory patients with Elevidys is seen as a positive step, but there remains uncertainty about the short-term impact of the previous dosing disruption. This uncertainty makes it difficult to assess the future trajectory and value of Elevidys, leading to a cautious stance.
Additionally, negative headlines surrounding the drug, including two reported deaths, have raised concerns about its risk/benefit profile, potentially limiting its uptake among physicians and patients. Furthermore, Sarepta faces liquidity risks related to financial obligations, including milestone payments to its partner Arrowhead and upcoming convertible debt. Despite having a significant cash reserve, the company needs a clear revenue strategy to meet these obligations, contributing to the Sell rating.