JMP Securities analyst Liisa Bayko was out with a research note on shares of Sarepta Therapeutics Inc (NASDAQ:SRPT), after the biotech company released uneventful second-quarter results and provided a corporate update. The analyst remains bearish on shares, reiterating an Underperform rating, with a price target of $10.00; a 55% decrease from where SRPT stock is currently trading.
Sarepta reported a wider loss than Bayko’s projection of $1.15 earnings per share with a reported loss of $1.35 earnings per share. Bayko believes that having closed 2Q:16 with $123 million should be enough cash to sustain the company into upcoming 2017. Everything right now rests on where the FDA decision will point for the future of eteplirsen and its new drug application.
In June’s Parent Project Musclar Dystrophy meeting, Sarepta indicated it would be able to generate the extra dystrophin data the FDA requested. If SRPT submits somewhere mid to late July, the analyst contends, “we project a potential decision at the end of August, once FDA has had time to review the data and complete its review.” Furthermore, Bayko asserts, “We maintain our thesis that the FDA is unlikely to approve the drug in this first cycle,” expecting merely a 10% chance of approval.
As usual, we consider it important to offer a track record for an analyst when reporting on new notes to give key perspective on the effect it has on stock performance. According to TipRanks, Liisa Bayko is ranked #543 out of 4,073 analysts, with a 45% success rate and an average return of 10.7% per recommendation.
TipRanks analytics currently rates SRPT stock as a Hold. Out of 14 analysts polled in the past 3 months, 36% rate a Buy, while 36% maintain a Hold, and 28% issue a Sell. The overall consensus for the price target over a period of 12 months is $21.00, with an approximate 7% downside from where shares last closed.