In a research report released today, WBB Securities analyst Stephen Brozak reiterated a Buy rating on shares of Sarepta Therapeutics Inc (NASDAQ:SRPT), and raised the price target to $40 (from $35), which represents a potential upside of 17% from where the stock is currently trading. The new price target reflects the potential of positive FDA decision on eteplirsen, the Company’s lead drug candidate or Duchenne muscular dystrophy, in 2016.

Brozak wrote, “We believe that SRPT will receive a positive FDA decision on eteplirsen in 2016. The FDA has acknowledged the importance of listening to patient groups and parents of DMD patients, who have been very vocal in expressing their desire to accelerate approval of a DMD drug while their children wither away. Many parents have also acknowledged that they are willing to accept novel therapeutic treatment given the lack of any impactful current standard of care.”

The analyst continued, “As a result of SRPT’s proximity to approval, we now value the eteplirsen program at $1 .3 billion. Again using a sum-of-the-parts calculation, we still value the SRPT drug discovery and development platform at $220 million. We still assign a $50 million value to the Marburg project, and include $1 58 million (A/O 6/30/15) in cash in our calculation. With an outstanding share count of 41.5 million, we arrive at our 12-month valuation of $40.00.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Stephen Brozak has a total average return of 45.5% and a 58.3% success rate. Brozak has a 36.9% average return when recommending SRPT, and is ranked #374 out of 3734 analysts.

Out of the 16 analysts polled by TipRanks, 9 rate Sarepta Therapeutics Inc. stock a Buy, while 7 rate the stock a Hold. With a return potential of 0.8%, the stock’s consensus target price stands at $34.55.

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