Wells’ new price target of $50 implies nearly 208% upside potential from the stock’s closing price on Wednesday.
Wells Fargo on Thursday raised its price target on Sarepta Therapeutics, Inc. (SRPT) to $50 from $48 after the company’s second-quarter earnings beat Wall Street expectations on Wednesday.
Wells’ new price target of $50 implies nearly 208% upside potential from the stock’s closing price on Wednesday. The analyst kept an ‘Overweight’ rating on the shares.
The firm reiterated its confidence in the Elevidys franchise, noting that it sees an intact benefit-risk for ambulatory patients and potential upside from future updates on the non-ambulatory side.
On Stocktwits, retail sentiment around Sarepta remained unmoved within ‘neutral’ territory over the past 24 hours while message volume remained at ‘normal’ levels.
A Stocktwits user opined that the second-quarter sales number shows that the recent patient deaths did not undermine demand.
Another highlighted that Elevidys caters to a niche patient population not addressed by many others.
Sarepta’s gene therapy, Elevidys, a medicine intended for the treatment of Duchenne muscular dystrophy (DMD), created safety concerns following the death of two patients after treatment. Both non-ambulatory patients suffered from acute liver failure.
Duchenne Muscular Dystrophy is a genetic disorder characterized by progressive weakness and chronic inflammation of the skeletal, heart, and respiratory muscles. The disease primarily impacts boys.
Sarepta has now resumed shipments for ambulatory individuals after a temporary pause initiated in late July. The company is now working with the FDA on the safety labelling process and risk-mitigation approach for non-ambulatory individuals, CEO Doug Ingram said on Wednesday.
For the second quarter, Sarepta reported total revenues of $611.1 million, above an analyst estimate of $531.04 million, owing to higher net product revenue of Elevidys. Adjusted and diluted earnings per share came in at $2.02, up from $0.43 in the corresponding quarter of 2024, and above an analyst estimate of $0.67.
The company also said that it is on track to realize over $100 million in cost savings through the end of 2025 as part of the restructuring announced in July. SRPT stock is down by about 86% this year and by about 87% over the past 12 months.
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