Sarepta Therapeutics Inc (SRPT) Investors Celebrate FDA Approval; Cowen Analyst Remains Sidelined
Sarepta Therapeutics Inc (NASDAQ:SRPT) investors have a reason to cheer following the news that the FDA today approved Exondys 51 (eteplirsen), the Company’s lead drug candidate that targets the underlying cause of Duchenne muscular dystrophy, under accelerated approval provisions. Sarepta shares reacted to the news, jumping nearly 93%.
However, Cowen analyst Ritu Baral remains sidelined, reiterating a Market Perform rating, without providing a price target.
Baral noted, “The label includes the expected indication of exon 51 skip amenable DMD as well as the first release of PROMOVI dystrophin data. While we are not surprised by this approval, we note several key issues going forward which will determine Exondys 51’s commercial success […] Overall, we think clinician response may be muted (based on prior consultant conversations) but there would still be a willingness to use (if not outright recommend the drug) based on continued excellent safety.”
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ritu Baral has a yearly average return of 7.8% and a 50% success rate. Baral has a -20% average return when recommending SRPT, and is ranked #293 out of 4163 analysts.
Out of the 15 analysts polled by TipRanks, 7 rate Sarepta Therapeutics Inc. stock a Buy, 5 rate the stock a Hold and 3 recommend Sell. With a downside potential of 53%, the stock’s consensus target price stands at $25.27.