Sarepta Therapeutics saw its stock soar by 5.13% on Monday, November 12th, following analysts' views that the company's Duchenne gene therapy treatment, Elevidys, is being undervalued by investors, presenting a buying opportunity.
In a research note, JPMorgan analysts stated that investors had been disappointed with Sarepta's implied guidance for Elevidys, a treatment for Duchenne muscular dystrophy. However, this selloff is seen as a fresh opportunity to capitalize on the stock's low valuation, as analysts believe the market is not fully pricing in the potential future sales and label expansion of Elevidys.
The analysts highlighted that the FDA expanded Elevidys's approval in June to include individuals 4 years old and up, a development that they believe could significantly boost the treatment's potential market. They argue that investors are not accurately accounting for this label expansion and the subsequent growth prospects for Elevidys.
With JPMorgan analysts expressing confidence in Sarepta's Duchenne gene therapy and its undervalued stock price, the market appears to be responding positively, driving the company's shares higher amidst optimism over the treatment's future prospects.
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