Sarepta Therapeutics Receives Outperform Rating from BMO
BMO Initiates ‘Outperform’ Rating for Sarepta Therapeutics
BMO analysts have initiated coverage of Sarepta Therapeutics (NASDAQ:) with an ‘Outperform’ rating and a $170 price target. They highlight the company’s leadership in Duchenne Muscular Dystrophy (DMD) and its high unmet need as key factors for the positive rating.
Sarepta’s Strong Position in DMD Therapies
Sarepta currently offers four commercial DMD therapies that generate over $1 billion annually. BMO’s rating is based on the robust efficacy of Elevidys in 4-5yo patients, supported by physician checks that indicate significant Elevidys uptake. Additionally, high barriers to entry due to clinical, commercial, and regulatory expertise contribute to the positive outlook.
Expectations for Elevidys Sales
BMO expects Elevidys quarterly sales to drive Sarepta’s growth story in 2024. The therapy has already generated $200 million in the first two quarters post-approval, demonstrating strong patient demand. Physician checks suggest a high willingness among eligible patients to receive Elevidys, positioning Sarepta favorably for revenue growth.
Potential Upside in Gene Therapy Portfolio
BMO notes that Sarepta’s gene therapy portfolio also provides further potential upside, contributing to the positive outlook for the company’s future performance.
Market Response
Following the announcement, SRPT stock is trading 0.87% higher at $120.13 Wednesday, reflecting positive investor sentiment following BMO’s coverage initiation.
