Analyst Michael Ulz from Morgan Stanley maintained a Buy rating on Sarepta Therapeutics (SRPT – Research Report) and keeping the price target at $196.00.
Michael Ulz has given his Buy rating due to a combination of factors surrounding Sarepta Therapeutics’ Elevidys treatment. Despite the unfortunate incident of a young boy’s death from acute liver failure, which raised safety concerns, the overall risk profile of Elevidys remains favorable. The incident was potentially exacerbated by a cytomegalovirus infection, which is known to affect the liver, suggesting that the treatment itself may not be the sole cause of the adverse outcome.
Furthermore, with over 800 patients treated with Elevidys, the occurrence of such severe adverse effects is rare, representing approximately 0.1% of the treated population. This low incidence rate, combined with the company’s proactive approach in analyzing and reporting the event to health authorities, supports the continued confidence in the treatment’s benefit-risk balance. As a result, Michael Ulz maintains a positive outlook on Sarepta Therapeutics’ stock, considering these factors.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $203.00 price target.
SRPT’s price has also changed dramatically for the past six months – from $125.010 to $73.540, which is a -41.17% drop .