Tempered Growth Outlook and Heightened Regulatory Risk Drive Sell Rating on Sarepta Therapeutics

Needham analyst Gil Blum has maintained their bearish stance on SRPT stock, giving a Sell rating today.

Gil Blum has given his Sell rating due to a combination of factors related to Sarepta Therapeutics’ growth outlook and regulatory risks. While 2025 revenue guidance is roughly in line with expectations and recent Elevidys and PMO sales slightly exceeded prior estimates, the absence of specific 2026 guidance is notable. Management only indicated an expectation of surpassing $500M in Elevidys sales for 2026, which implies a meaningfully weaker trajectory than prior assumptions and signals a potential revenue gap. This tempered outlook, in Blum’s view, undermines confidence in the company’s medium‑term growth profile.

Blum also highlights substantial clinical and regulatory uncertainty surrounding Sarepta’s PMO franchise. The negative outcome of the ESSENCE study raises doubts about the likelihood of securing full approvals for Vyondys and Amondys, putting a key portion of the portfolio at risk. In addition, the upcoming MISSION trial for Exondys, now pushed to the second half of 2026, introduces further downside risk if results do not support robust efficacy. Although Sarepta is pursuing additional studies such as ENDEAVOR cohort 8 and stepping up advocacy efforts for existing data, Blum believes these initiatives do not sufficiently offset the combination of limited visibility, trial risk, and potential setbacks to justify a more constructive rating at this time.

Blum covers the Healthcare sector, focusing on stocks such as Autolus Therapeutics, Cartesian Therapeutics, and Mereo Biopharma Group Plc. According to TipRanks, Blum has an average return of 7.7% and a 39.47% success rate on recommended stocks.

In another report released today, Bank of America Securities also maintained a Sell rating on the stock with a $19.00 price target.