Opco upgrades Sarepta ahead of expected Elevidys label expansion

Oppenheimer upgraded Sarepta Therapeutics to Outperform from Perform with an $180 price target. The analyst believes a potential Elevidys label expansion is a “prelude” to Sarepta’s pipeline in other muscular dystrophies and next-generation commercial products. The firm assumes an 80% to 90% of label expansion probability for Elevidys to all ambulatory Duchenne muscular dystrophy boys. Opco also added SRP-5051 to its model, saying the drug is an underappreciated asset. While the current effect is modest, potential U.S. and outside the U.Sgreater than sales could make this asset of great value to Sarepta, the firm contends. Once a biotech company becomes profitable, accelerating sales and earnings can lead to a “significant re-rating of the shares,” it writes. Opco advises investors to consider Sarepta in this context.