Sarepta Therapeutics (SRPT) is facing a storm of skepticism on Wall Street following safety concerns linked to its flagship gene therapy, Elevidys. Yet, despite recent downgrades and a sharp sell-off, overall analyst sentiment on the stock is bullish, pointing to its strong pipeline and the long-term potential of gene therapies. With a possible 200% rebound on the table, Sarepta remains a high-risk, high-reward play that could deliver outsized gains if it can address safety issues and regain market confidence.
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For context, Sarepta is focused on developing genetic medicines to treat rare neuromuscular diseases, including Duchenne muscular dystrophy (DMD).
What’s Happening with SRPT Stock?
SRPT began the week on a sharp downturn, with shares plunging as much as 46% on Monday following confirmation of a second patient death tied to its DMD gene therapy, Elevidys. In response, Sarepta and its global partner Roche (RHHBY) have suspended both commercial and clinical use of the treatment in non-ambulatory patients, pending a comprehensive safety review.
The company first disclosed a patient death linked to Elevidys in March. Both non-ambulatory patients experienced acute liver failure following treatment. Year-to-date, SRPT stock declined by over 80%.
The tragic development triggered a wave of analyst downgrades and raised serious concerns about the future of Elevidys, a key driver of Sarepta’s long-term growth narrative. Nonetheless, some investors see the pullback as a strategic entry point rather than a red flag, given its first-mover advantage in Duchenne muscular dystrophy treatment.
Analysts Turn Cautious on SRPT Stock
Notably, H.C. Wainwright analyst Mitchell Kapoor downgraded SRPT from Neutral to Sell earlier this week, slashing the price target from $40 to $10. Kapoor cited heightened risks associated with Elevidys and warned that patients and physicians may avoid the therapy unless long-term data confirms a very low risk of treatment-related death.
Meanwhile, Piper Sandler and Morgan Stanley also downgraded SRPT from Buy to Hold, cutting their price targets. Moreover, Needham trimmed its target from $125 to $50, while UBS sharply lowered its estimate from $188 to $85, reflecting broader caution across Wall Street.
Needham analyst Gil Blum cut his revenue forecast for Elevidys to $969 million from $1.4 billion, excluding all non-ambulatory patients. Sarepta has also temporarily suspended its revenue guidance.
What is SRPT’s Stock Price Forecast?
According to TipRanks, Wall Street has a Moderate Buy consensus rating on SRPT stock, based on 15 Buys, nine Holds, and one Sell assigned in the last three months. The average Sarepta Therapeutics stock price target of $64.50 implies a 199.17% upside potential.
