Sarepta Downgraded As FDA Decision Date Approaches, Shares Up 50% Over Last Six Months
Portfolio Pulse from Vandana Singh
RBC Capital Markets has downgraded Sarepta Therapeutics (NASDAQ:SRPT) due to balanced risk and reward ahead of the FDA's decision on Elevidys. Despite a 50% rise in shares over the last six months, tempered messaging from the FDA and the company has led to a reduced price target and rating cut. Pfizer's (NYSE:PFE) recent safety issues also contribute to cautious sentiment.
May 28, 2024 | 6:40 pm
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NEGATIVE IMPACT
RBC Capital Markets downgraded Sarepta Therapeutics from Outperform to Sector Perform, citing balanced risk and reward ahead of the FDA's decision on Elevidys. The price target was reduced from $157 to $142. Shares have risen 50% in the last six months but are down 9.19% to $112.12 following the downgrade.
The downgrade and reduced price target are likely to negatively impact SRPT's stock price in the short term. The tempered expectations from the FDA and the company's messaging contribute to this outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Pfizer's recent safety issues in a gene therapy trial have contributed to cautious sentiment around Sarepta Therapeutics' FDA decision. This may indirectly affect Pfizer's stock as well.
While Pfizer's safety issues are mentioned, the primary focus is on Sarepta. The indirect impact on Pfizer's stock is less certain and likely minimal in the short term.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30