H.C. Wainwright analyst Mitchell Kapoor has reiterated their neutral stance on SRPT stock, giving a Hold rating on May 8.
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Mitchell Kapoor’s rating is based on several factors surrounding Sarepta Therapeutics’ current clinical trials and regulatory challenges. The recent clearance by the UK’s Medicines & Healthcare products Regulatory Agency to resume dosing in the Phase 3 ENVISION study is a positive step; however, the European Medicines Agency’s temporary clinical hold on multiple studies, including ENVISION, remains unresolved. This uncertainty affects Sarepta’s ability to gather crucial data needed for broader payer coverage, particularly for non-ambulatory and older patients with Duchenne Muscular Dystrophy.
Additionally, the anticipated data from the ENVISION study is critical for determining the commercial viability of ELEVIDYS in these patient subgroups. Without the resolution of the clinical hold, Sarepta may face limitations in expanding coverage beyond the current patient base of ambulatory patients aged 4-7. These factors contribute to Kapoor’s decision to maintain a Hold rating, reflecting a cautious stance given the ongoing uncertainties and potential impact on Sarepta’s market prospects.
In another report released on May 8, Evercore ISI also downgraded the stock to a Hold with a $50.00 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SRPT in relation to earlier this year.