Sarepta recent weakness brings buying opportunity, says JPMorgan

JPMorgan sees a long-term buying opportunity after Sarepta (SRPT) shares were under pressure last week post earnings. Near-term, if one believes that Sarepta is being overly conservative on Q4 Elevidys product guidance, current share levels offer a compelling buying opportunity, the analyst tells investors in a research note. And longer term, there is a “clear valuation disconnect,” with current levels pricing in essentially a 4-7 year-old Elevidys label scenario, which does not make sense given unmet need in Duchenne muscular dystrophy and label dynamics, contends JPMorgan. It keeps an Overweight rating on the shares.