Sell Rating on Sarepta: Strong siRNA Muscle Exposure Undermined by Weak Clinical Validation and ELEVIDYS Sales Risk

H.C. Wainwright analyst Mitchell Kapoor has reiterated their bearish stance on SRPT stock, giving a Sell rating yesterday.

Mitchell Kapoor has given his Sell rating due to a combination of factors, primarily the disconnect between Sarepta’s strong siRNA muscle exposure and still-incomplete clinical validation. In DM1, SRP-1003 shows higher drug levels in muscle than rival programs, but the company has only partial DMPK knockdown data and lacks full higher-dose results, making the claimed mechanistic edge largely inferential rather than clearly proven in patients.

Mitchell Kapoor’s rating is based on the view that early FSHD data for SRP-1001 follow a similar pattern, with standout muscle concentrations but biomarker signals that are not convincingly superior to competitors on a cross-trial basis and are complicated by assay changes, small cohorts, and data exclusions. He also emphasizes that even if these siRNA assets succeed longer term, they remain too early to counteract the near‑term risk from weakening ELEVIDYS sales, which he sees as the true driver of Sarepta’s value, supporting his $5, 12‑month price target and Sell recommendation.

In another report released yesterday, Citi also maintained a Sell rating on the stock with a $13.00 price target.

Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SRPT in relation to earlier this year.