Sarepta Therapeutics (SRPT) is offering an "attractive" entry point following an early summer stock sell-off due to Elevidys patient deaths, Wedbush said in a Tuesday report.
The report said the sell-off was overdone, and Elevidys could regain approval in non-ambulatory patients by early 2027.
"Sarepta is undoubtedly the best known name when it comes to Duchenne muscular dystrophy, and the recent regulatory and clinical setbacks have created an attractive entry point," said Wedbush analyst Yun Zhong.
On exon-skipping products that have generated close to $1 billion in annual sales, the report said they should continue to generate a stable revenue stream despite the recent negative ESSENCE study data and emerging competition.
"We project continued patient uptake based on a high compliance rate that SRPT has reported, comprehensive real world data supporting clinical benefit, and favorable KOL feedback," the analyst said. KOL refers to Key Opinion Leaders.
Wedbush initiated coverage of the stock with an outperform rating and a price target of $32 per share.
Price: 22.22, Change: +0.36, Percent Change: +1.65
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