Sarepta Craters After RBC’s 45% Price Target Cut

• Sarepta Therapeutics (SRPT) stock fell 8% to $64.80 after RBC Capital downgraded it to ‘Sector Perform’ from ‘Outperform,’ cutting the price target to $87 from $161, citing a dimmer outlook for Elevidys based on physician feedback.
• The $6.83 billion market cap biotech faces heightened uncertainty as the market questions Elevidys’s commercial potential, reflecting broader challenges in translating gene therapy promise into sustained growth.

Sarepta Therapeutics Inc. (SRPT) is grappling with a steep 8% decline in its stock price, dipping to $64.80 in Monday’s early trading after hitting an intraday low of $63.00, as investor confidence wavers in the wake of a sobering downgrade from RBC Capital. The $6.83 billion market cap biopharmaceutical firm, known for its pioneering work in gene therapies, saw RBC slash its rating from ‘Outperform’ to ‘Sector Perform,’ with the price target tumbling to $87 from a lofty $161. This recalibration reflects growing skepticism about the commercial prospects of Elevidys, Sarepta’s flagship gene therapy for Duchenne muscular dystrophy, following RBC’s recent physician surveys that suggest a less rosy outlook than previously anticipated.

The downgrade underscores broader challenges in the biotech sector, where high expectations for innovative treatments often collide with the realities of market uptake and clinical adoption. Elevidys, a one-time treatment designed to address the genetic root of a devastating muscle-wasting disease, had been a cornerstone of Sarepta’s growth narrative, but RBC’s “incrementally less bullish” stance hints at potential hurdles—whether in physician enthusiasm, patient access, or competitive pressures. With shares now trading well below the revised $87 target, the market’s reaction amplifies concerns about Sarepta’s near-term trajectory. For a company valued at $6.83 billion, this 8% drop erases significant shareholder value, spotlighting the volatility inherent in biopharma investing. As Sarepta navigates this setback, its ability to bolster Elevidys’s momentum will be critical to restoring faith among analysts and investors alike in a fiercely competitive therapeutic landscape.

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