BofA lowered the firm’s price target on Sarepta (SRPT) to $16 from $17 and keeps an Underperform rating on the shares after the company announced the refinancing of about $700M of 2027 convertible notes for about $602M of 2030 convertible notes, up to 6.7M shares of common stock, and $123.3M in cash. The debt refinancing transaction “makes sense” as it helps mitigate some near-term concerns about the company’s ability to meet its obligations, but the firm continues to think clarity on uptake of Elevidys from here will be needed to get more comfortable with the long-term outlook, the analyst tells investors.
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Read More on SRPT:
- Sarepta refinances $700M of convertible notes, extends maturities to 2030
- Sarepta Therapeutics Restructures Debt with New Convertible Notes
- Sarepta Therapeutics Faces Regulatory Challenges and Potential Share Price Decline
- Citi says FDA may take ‘more comprehensive look’ at Sarepta Elevidys adjustment
- Sarepta price target raised to $17 from $10 at BofA