RBC downgrades Sarepta on growing expectations into Elevidys decision

RBC Capital analyst Brian Abrahams downgraded Sarepta to Sector Perform from Outperform with a price target of $142, down from $157, ahead of the June 2 Elevidys FDA action date. The firm still expects significant share upside on the broadest label with $2.6B peak annual U.S. sales potential. However, with the shares having appreciated 50% in the last six months, many investors appear to already expect label expansion and regulatory flexibility, the analyst tells investors in a research note. The firm senses “slightly more tempered” messaging from the FDA and sees “somewhat less marked upside” to its blended scenarios. Expectations for Sarepta are growing steadily, “potentially making the setup less compelling,” contends RBC.