Mizuho Securities has upgraded its rating for Sarepta Therapeutics (NASDAQ: SRPT) from neutral to outperform, as detailed in a research note released on October 22, 2023. The investment firm also increased its price target for the biotechnology company’s stock to $26.00, up from a previous target of $19.00. This upgrade reflects increasing optimism regarding Sarepta’s future performance and potential growth in the biopharmaceutical sector.
Additional reports from other analysts provide a mixed view on Sarepta. On the same day, UBS Group maintained a “neutral” rating. Meanwhile, Bank of America adjusted its price target from $16.00 to $18.00, issuing an “underperform” rating. In contrast, Morgan Stanley raised its target from $15.00 to $20.00 and assigned an “equal weight” rating. Adding to the positive sentiment, Barclays upgraded Sarepta from “underweight” to “equal weight,” setting a target price of $22.00. Lastly, BMO Capital Markets elevated its rating from “market perform” to “outperform” with a target of $50.00.
Currently, eight analysts have assigned a Buy rating to Sarepta’s stock, while fifteen analysts recommend holding, and six have given a Sell rating. According to MarketBeat data, the stock maintains a consensus rating of “Hold” with a consensus price target of $33.75.
Quarterly Earnings Results
Sarepta Therapeutics reported its quarterly earnings on November 3, 2023, revealing a loss of ($0.13) earnings per share (EPS), which was below the consensus estimate of $0.02 by $0.15. The company generated revenue of $399.36 million for the quarter, surpassing analysts’ expectations of $331.51 million. Despite this revenue success, Sarepta faced challenges, including a negative return on equity of 1.03% and a negative net margin of 2.34%. Comparatively, quarterly revenue decreased by 14.5% year-over-year, with the same quarter last year yielding an EPS of $0.62. Analysts project an average EPS of 2.67 for the current fiscal year.
Institutional Investors’ Activity
Recent movements among institutional investors indicate growing interest in Sarepta’s stock. For instance, Inspire Investing LLC acquired a new stake valued at approximately $967,000 during the first quarter. UBS Asset Management increased its stake by 54.8%, now holding 463,342 shares valued at $29.57 million after purchasing an additional 164,041 shares.
Furthermore, Tempus Wealth Planning LLC expanded its stake by 475.8% in the second quarter, now owning 20,658 shares valued at $353,000. Assenagon Asset Management S.A. also increased its holdings by 21.8%, totaling 867,939 shares valued at $14.84 million. Additionally, Trexquant Investment LP invested approximately $11.99 million in a new stake during the first quarter. Currently, institutional investors and hedge funds own approximately 86.68% of Sarepta’s stock.
Sarepta Therapeutics continues to focus on the discovery and development of RNA-targeted therapeutics and gene therapies for rare diseases. The company’s product offerings include EXONDYS 51 and VYONDYS 53, both aimed at treating Duchenne muscular dystrophy. As Sarepta navigates the complex biopharmaceutical landscape, analysts and investors will be closely monitoring its performance and strategic decisions in the coming months.
