In a research report published Wednesday, Oppenheimer’s healthcare analyst Christopher Marai reiterated an Outperform rating on shares of Sarepta Therapeutics Inc (NASDAQ:SRPT), while raising the price target to $60 (from $45), which represents a potential upside of 187% from where the stock is currently trading. The increased target comes in anticipation of positive FDA panel and PDUFA outcomes.
Marai explained, “We now fully account for accelerated approval of EXONDYS-51 (eteplirsen) and pediatric review voucher (est. $350M+ value); we update our ests. We believe SRPT is differentiated from other companies in the space, although approval risk remains, and perceived as heightened, post Translarna (PTCT) RTF and Kyndrisa (BMRN) CRL, two events that were admittedly more negative than we anticipated. Sarepta is, however, differentiated with (1) positive long-term trial data, supported by dystrophin, (2) ongoing FDA-wide interactions, and (3) patient/KOL advocacy favoring accelerated approval outcome, in our view (more pg 4). Consequently, we believe SRPT offers compelling risk/reward into upcoming PDUFA (May 26), with upside to $60 on approval and downside to <$10 without. Near-term weakness around briefing document release, on or prior to April 21, may present buying opportunity.”
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 12% and a 53% success rate. Marai has a 213% average return when recommending SRPT, and is ranked #74 out of 3762 analysts.Out of the 15 analysts polled by TipRanks, 9 rate Sarepta stock a Buy, 5 rate the stock a Hold and 1 recommends to Sell. With a return potential of 84%, the stock’s consensus target price stands at $38.45.