Piper Sandler maintains neutral stance on Sarepta stock amid safety concerns

Published 2025/06/23, 15:50
Piper Sandler maintains neutral stance on Sarepta stock amid safety concerns

Investing.com - Piper Sandler maintained its Neutral rating and $36.00 price target on Sarepta Therapeutics (NASDAQ:SRPT) stock following safety concerns with its Duchenne muscular dystrophy (DMD) treatment Elevidys. The stock, currently trading at $19.36, appears undervalued according to InvestingPro Fair Value metrics, despite falling 83% year-to-date.

The safety event reported a week ago became a significant topic of discussion at the Parent Project Muscular Dystrophy (PPMD) annual meeting. Sarepta scheduled an "open" session with the DMD community as part of a last-minute change to the meeting's agenda. With a market capitalization of $1.9 billion and an overall Financial Health score rated as "FAIR" by InvestingPro, the company maintains strong liquidity with current assets exceeding short-term obligations.

Medical (TASE:BLWV) experts are working to identify which patient populations face the highest risk from the treatment. Current assessments suggest patients with underlying liver steatosis (fatty liver) may have an elevated risk of acute liver injury when receiving Elevidys.

Non-ambulatory dosing of Elevidys has been placed on hold due to these safety concerns. The caution appears to be extending beyond this group, as older ambulatory boys may also be delaying treatment with the therapy.

The Piper Sandler analysis comes as Sarepta navigates these emerging safety challenges with its DMD treatment, which has implications for both current administration protocols and potential future patient populations.

In other recent news, Sarepta Therapeutics has faced significant developments following a second fatal liver failure case linked to its Elevidys treatment for Duchenne muscular dystrophy. The company has suspended shipments of Elevidys for non-ambulatory patients and halted its fiscal year 2025 product revenue guidance due to uncertainty around safety concerns. Analysts have reacted with multiple downgrades and price target reductions. Oppenheimer lowered its price target to $45, maintaining an Outperform rating, while William Blair downgraded the stock to Market Perform, citing limited revenue potential. Mizuho also reduced its price target to $40 and cut its ambulatory sales forecast by 25%, though it still views the stock as a buying opportunity at current levels. TD Cowen downgraded Sarepta from Buy to Hold with a new price target of $24, expressing concerns about the potential withdrawal of Elevidys' FDA approval. Evercore ISI adjusted its price target to $28, maintaining an In Line rating, and noted that most cash generated in the coming years will address convertible debt. These developments highlight the challenges Sarepta faces amid safety concerns surrounding its Elevidys treatment.

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