Sarepta Therapeutics, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Ritu Baral from TD Cowen maintained a Hold rating on the stock and has a $12.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ritu Baral has given her Hold rating due to a combination of factors impacting Sarepta Therapeutics. The negative opinion from the Committee for Medicinal Products for Human Use (CHMP) regarding Elevidys for the treatment of 3-7-year-old ambulatory Duchenne Muscular Dystrophy (DMD) played a significant role. This opinion was based on the Phase 3 EMBARK trial data, which did not achieve statistical significance in its primary endpoint, raising concerns about the efficacy of Elevidys.
Additionally, the commercial suspension of Elevidys in the U.S. and the rising liquidity and solvency risks due to $1.1 billion in convertible debt maturing in 2027 contributed to the Hold rating. Concerns about the safety of the rh74 platform and the removal of Limb-Girdle Muscular Dystrophy (LGMD) assets from the valuation further influenced the decision. These factors led to a reduction in the price target for Sarepta Therapeutics, reflecting the uncertainties and challenges the company faces.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $15.00 price target.