Oppenheimer analyst Hartaj Singh is out with a new research note on shares of Sarepta Therapeutics Inc (NASDAQ:SRPT), reiterating an Outperform rating and price target of $76. While the analyst acknowledges that Sarepta’s shares have given back gains since providing a positive update at JPMorgan conference in mid-January, he argues that the stock is actually acting fairly rationally.
Singh noted, “The current $1.5B market cap indicates that the Street values peak Exondys 51 sales in the US at $300M to $500M (at 3x to 5x future sales). This is at the low end of biotech growth story multiples, and increasing visibility on the continuing successful US launch could lead to a multiple expansion up to twice that is currently ascribed.”
“While the SRPT story has been a controversial one over the last year, we would advise investors new to the name to start buying and current owners to potentially add to their positions. With positive sentiment over the US launch increasing and with the EU application approval ~YE17/early 2018 coming into view, we believe the current valuation of the name is irrational,” Singh concludes.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Hartaj Singh has a yearly average return of -6.8% and a 47% success rate. Singh has a -0.4% average return when recommending SRPT, and is ranked #3977 out of 4460 analysts.