It’s a big day for Sarepta Therapeutics (NASDAQ:SRPT) investors. The company released positive preliminary results from a gene therapy for Duchenne muscular dystrophy (DMD) that had many, even some of the biggest bears on the stock, commending the headway Sarepta has made. The market has rewarded the drug maker’s stock by bidding its shares up nearly 37%.
The news prompted a wave of positive comments from industry analysts. Notably, H.C. Wainwright analyst Debjit Chattopadhyay reiterated a Buy rating on Sarepta shares, while nearly tripling the price target to $267 (from $96), which implies an upside of 86% from current levels. (To watch Chattopadhyay’s track record, click here)
Chattopadhyay wrote, “The microdystrophin gene therapy data albeit early, and limited to three patients (one more than was initially expected), did not disappoint. These are an immense positive for the DMD patient community and a shot in the arm for broader gene therapy approaches targeting a variety of neuromuscular disorders. Sarepta’s data pointed to: (1) a mean de novo microdystrophin expression in the 38% range, which was comfortably higher than the 15% to 20% threshold; (2) a 76% increase in microdystrophin positive fibers, which is meaningfully ahead of the 50% needed for robust functionality; and (3) a concomitant 80% decrease in CK, the key marker for muscle damage in the younger patients, all pointing to the basis for an industry-leading gene therapy platform with potentially curative benefit in DMD, in our view […] With the data reflecting our homerun situation, we are increasing our target.”
Most on Wall Street anchor a bullish perspective on the biotech player, much like Chattopadhyay, as TipRanks analytics showcase SRPT as a Strong Buy. Based on 17 analysts polled in the last 3 months, 15 rate a Buy on Sarepta stock, while only 2 issue a Hold. However, following today’s share price move, the 12-month average price target of $122.67 suggests a 15% downside from where the stock is currently trading.