Analyst Mitchell Kapoor from H.C. Wainwright reiterated a Sell rating on Sarepta Therapeutics (SRPT – Research Report) and keeping the price target at $75.00.
Mitchell Kapoor has given his Sell rating due to a combination of factors that suggest a potential slowdown in the uptake of ELEVIDYS, a key product for Sarepta Therapeutics. Despite strong performance in the fourth quarter of 2024, the company’s management maintained its revenue guidance for 2025 without an upward revision, which was anticipated given the recent demand trends. This decision implies that while ELEVIDYS is expected to grow significantly, other revenue streams might decline, adding risk to holding the stock.
Additionally, conversations with payers indicate a reluctance to expand coverage for older and non-ambulatory Duchenne muscular dystrophy patients, who represent a significant portion of the patient population. This lack of coverage could hinder the sales momentum of ELEVIDYS, as most payer decisions have likely been finalized. The limited expansion of coverage and the challenges faced in overturning denials on appeal contribute to the expectation of a deceleration in sales, reinforcing the Sell recommendation.
According to TipRanks, Kapoor is an analyst with an average return of -18.8% and a 28.13% success rate. Kapoor covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Halozyme, and Summit Therapeutics.
Questions or Comments about the article? Write to editor@tipranks.com