Bob Karr
2 min read
In This Article:
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is one of the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers. On June 18, TD Cowen downgraded Sarepta Therapeutics, Inc. (NASDAQ:SRPT)’s stock to “Hold” from “Buy,” reducing the price objective to $24 from the prior target of $62, as reported by The Fly. This downgrade reflects the increased probability of withdrawal of Elevidys’ FDA approval, for non-ambulatory and potentially ambulatory patients, as per the firm’s analysis, mainly if the company continues to lose support from the Duchenne muscular dystrophy community.
A laboratory technician in a white coat holding a microscope and examining a vial of biopharmaceuticals.
The safety worries seem to be central to this downgrade, with the firm highlighting that Elevidys shows a 30% liver function test elevation rate. This suggests that the treatment’s safety profile is being re-evaluated throughout all DMD patients. Overall, the new price objective for Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is considering the firm’s DCF valuation of Elevidys, which is adjusted for the probability of market withdrawal. However, as part of a comprehensive review of safety data, Sarepta Therapeutics, Inc. (NASDAQ:SRPT) continues to take proactive steps to mitigate the risk of acute liver failure in non-ambulatory patients.
Overall, the company stated that the broader biotech market witnessed significant pressure in Q1 2025. Considering the company’s significant revenue and a deep pipeline, it is well-placed to navigate the challenging times.
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a commercial-stage biopharmaceutical company focusing on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for treating rare diseases.
While we acknowledge the potential of SRPT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SRPT and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
