Analysts are weighing in on clinical-stage biopharmaceutical company Sarepta Therapeutics Inc (NASDAQ:SRPT) and software company PROS Holdings, Inc. (NYSE:PRO). While investors read negatively into the FDA briefing documents for Sarepta’s eteplirsen, PROS Holdings announced disappointing preliminary financial results, sending shares sharply down Friday.
Sarepta Therapeutics Inc
Shares of Sarepta are falling nearly 57% after the FDA posted negative briefing on eteplirsen, Sarepta’s drug for a rare muscle wasting disorder. However, Oppenheimer analyst Christopher Marai remains positive on Sarepta’s shares, reiterating an Outperform rating and a price target of $45.
Marai commented, “The briefing documents focused on evidence of efficacy in two key areas, dystrophin data and clinical data vs. controls/natural history. We expect an additional question on final thoughts and totality of data to be added at the AdCom next Friday. The sentiment of eteplirsen’s briefing documents does not appear to be as negative as Kyndrisa’s, especially wording of questions to the committee, and may be more open to expert and Sarepta commentary. The reason for early release of the briefing documents is unknown; however, we believe it may help panelists prepare as the preparation of panelists at BMRN’s panel was disappointing. Reference to outcomes for subgroups is, in our view, positive, given attention to patient selection in the eteplirsen trials and is supportive of PTCT’s (NASDAQ: PTCT) Translarna data.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Christopher Marai has a yearly average return of 15.1% and a 53% success rate. Marai has a 40.5% average return when recommending SRPT, and is ranked #34 out of 3607 analysts.
Out of the 15 analysts polled by TipRanks, 12 rate Sarepta stock a Buy, while 3 rate the stock a Hold. With a return potential of 189%, the stock’s consensus target price stands at $43.50.
PROS Holdings, Inc.
Stifel Nicolaus analyst Tom Roderick downgraded shares of PROS Holdings from a Buy to a Hold rating, after the company announced preliminary fourth-quarter results that meet revenues and exceed EPS targets, but miss projected bookings targets. PROS Holdings shares reacted to the news, falling 21.52% to $15.13.
Roderick commented, “We have held deep reserves of patience with PROS as it has navigated the tricky waters of a model transition to SaaS, but suggest that further patience is unwarranted without first seeing more material signs of progress. We do not view our downgrade from a Buy rating to a Hold rating as a call that PROS will not be capable of ultimately making a successful transition to a Cloud-centric model, but rather an acknowledgement that it could take another two years, at least, to turn the corner.”
According to TipRanks.com, analyst Tom Roderick has a yearly average return of 4.5% and a 52% success rate. Roderick has a -2.7% average return when recommending PRO, and is ranked #646 out of 3607 analysts.
As of this writing, out of the 7 analysts polled by TipRanks, 3 rate PROS Holdings stock a Buy, 3 rate the stock a Hold and 1 recommends to Sell. With a return potential of 73%, the stock’s consensus target price stands at $27.