Top Analyst Says Sarepta (SRPT) Stock Has More Room to Run

Christmas is over and it seems like people spent their gift money on stocks… Sarepta Therapeutics (SRPT) stock rose over 10% is the past two days and Cowen’s top analyst Ritu Baral is predicting it will rise even more. The analyst reiterates an Outperform rating on SRPT with price target of $178, which shows a hefty potential upside of 78%.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Ritu Baral has a yearly average return of 19.3% and a 41% success rate. Baral has a 72.8% average return when recommending SRPT, and is ranked #78 out of 5,075 analysts.

Baral noted, “We expect the data from the first patient cohort of data (2 active and 1 PBO) to show biopsy evidence of 20-30% of normal higher levels of beta-sarcoglycan expression over the PBO (with expectations that the PBO patient will show <5% of normal levels). We expect IHC data to show the newly expressed beta-sarcoglycan to be correctly localized to the muscle membrane (the sarcolemma), possibly even with evidence of correct incorporation within the dystrophin complex. We also expect good safety, with no problematic liver AEs or problematic immune reactions. Given the potential $~350MM market opportunity within LGMD2E, the read-through to other LGMD subtypes, and the already high expectations for this data (not to mention the challenging tape), […] If MYO-101 can achieve expression of at least ~20% of normal β-sarcoglycan levels, we think it would lead to clinically meaningful functional improvements in LGMD2E patients.”

The analyst goes on to assert that 60 days post-treatment will likely be too early for patients to notice any improvements in functional measure. However, the analyst says she would view positive biopsy data as having a “positive read-through to the potential of the rest of the LGMD programs in SRPT’s pipeline.

Baral is certainly not alone when it comes to rooting for SRPT. TipRanks analytics show the consensus rating is a “Strong Buy,” with 18 analysts weighing in on the stock. Out of the group, 17 are bullish and 1 is sidelined. The price target of $198.20 shows a 94% potential upside from current levels. (See SRPT’s price targets and analyst ratings on TipRanks)

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