Needham analyst Gil Blum has reiterated their bearish stance on SRPT stock, giving a Sell rating on October 22.
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Gil Blum’s rating is based on the recent outcomes of the ESSENCE study, which did not demonstrate a significant difference in the 4-step ascend velocity for Sarepta Therapeutics. This result aligns with previous studies of similar nature that have also failed to show meaningful functional improvements. While the FDA is not expected to withdraw Vyondys and Amondys from the market, there is a concern that reimbursement pressures could increase, affecting the company’s financial outlook.
Furthermore, the MISSION study, which is primarily focused on dose-finding, may not meet expectations due to its NSAA primary endpoint. This adds to the uncertainty surrounding Sarepta’s future performance. The combination of potential reimbursement challenges and the likelihood of continued negative news from ongoing studies contributes to the Sell rating, as these factors could lead to further downside for the stock.
In another report released on October 22, Bank of America Securities also reiterated a Sell rating on the stock with a $18.00 price target.