Sarepta financing net negative for equity holders, says H.C. Wainwright

H.C. Wainwright reiterates a Sell rating on Sarepta (SRPT) with a $5 price target The company’s recent financing is a net negative for equity holders as it delivers modest net debt reduction but at the cost of nearly 10% dilution, the analyst tells investors in a research note. The firm says the financing brings a $21M increase in annual convert interest expense and a $103M cash drain. The inability to push out the full 2027 maturity wall underscores creditor skepticism about Sarepta’s financial stability and ability to remain a going concern through 2030, the analyst tells investors in a research note.