Sarepta Therapeutics Inc (NASDAQ:SRPT) shares are soaring nearly 18% in pre-market trading Thursday, after the drug maker reported solid second-quarter earnings and provided a corporate update to investors. Sarepta handily beat consensus 2Q Exondys 51 sales estimates of $22 million by $13 million and raised FY17 guidance to a range of $125-$130 million, compared to consensus estimate of $104 million.
In reaction, Cowen analyst Ritu Baral reiterated an Outperform rating on SRPT, while raising her price target to $69 (from $62), which implies an upside of 102% from current levels (To watch Baral’s track record, click here).
Baral commented, “We have adjusted our estimates to reflect the change in guidance and now model $126.8MM in Exondys 51 revenues for 2017, up from our previous $102M estimate. We have also pushed forward the rapidity of the launch in our model, thus moving peak penetration to 2021 from 2025 and driving our probability-weighted NPV price target to $69. The updated guidance does not include any potential revenue from exUS sales from the managed access program expected to start in 4Q17. At the end of 2Q17, SRPT had $301.7MM in cash, which we estimate is sufficient to fund operations into 2019.”
“The Exondys 51 launch is very clearly progressing well, evidenced by the secondquarter in a row revenue beat and raise as well as positive commentary on additional launch metrics,” the analyst added.
As of this writing, all the eight analysts polled by TipRanks (in the past 3 months) rate Sarepta stock a Buy. With a return potential of 90%, the stock’s consensus target price stands at $64.83.