Positive Outlook for Sarepta Therapeutics Amid Elevidys Expansion and Strategic Collaborations

Sarepta Therapeutics (SRPT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on May 16. Analyst Andrew Tsai from Jefferies maintained a Buy rating on the stock and has a $125.00 price target.

Andrew Tsai has given his Buy rating due to a combination of factors that highlight the potential growth and positive outlook for Sarepta Therapeutics. One key reason is the anticipated label expansion for Elevidys, which could broaden its use to younger patients, enhancing its market potential. The recent data from the open-label Study ‘103 (ENDEAVOR) supports this expansion, showing promising results in younger age groups, which could lead to increased adoption and sales.
Furthermore, despite concerns over a recent patient death, the independent Data Monitoring Committee has maintained a positive benefit/risk profile for Elevidys, and the drug has received approval in Japan for younger patients. Additionally, the company’s ongoing trials and collaborations, such as with Roche, along with the lack of alternative treatments, position Sarepta favorably in the market. These factors contribute to a positive long-term outlook, justifying the Buy rating.

Tsai covers the Healthcare sector, focusing on stocks such as Annexon Biosciences, Sarepta Therapeutics, and Supernus Pharmaceuticals. According to TipRanks, Tsai has an average return of -0.7% and a 45.90% success rate on recommended stocks.

In another report released on May 13, Morgan Stanley also reiterated a Buy rating on the stock with a $113.00 price target.