RBC Capital Markets More Than Doubles Sarepta Price Target, Citing 'potential For Real Upside'

By Markets MarketWatch Pulse

RBC Capital Markets raised Sarepta Therapeutics Inc.'s price target by more than double the current level to $108 a share on Wednesday. In raising its target, the bank cited its interviews with key opinion leaders and survey of 100 neurologists about Sarepta's recently-approved Duchenne muscular dystrophy drug. Sarepta shares rose 4.7% in morning trade Wednesday. Though the price target increase is sizable given the company's current $62.45 share price, analyst Simos Simeonidis said its basis was "some pretty conservative assumptions, which represent potential for real upside." RBC Capital Markets' investor call with three experienced neurologists who treat Duchenne muscular dystrophy revealed they were "positive overall" and even bullish about Sarepta's Exondys 51, suggesting that "neurologists [are] likely to recommend EXONDYS 51 to majority of patients." Simeonidis predicted a "very successful launch" of the drug, "once the logistics of reimbursement are slowly ironed out for patients in the first 2-3 quarters." Though RBC Capital Markets' outlook may seem overly bullish, Simeonidis said, the company's model used the worst-case scenario in terms of patent litigation and didn't include for markets for the drug outside of the U.S. and European Union. Sarepta shares rose 246.1% over the last three months, compared with a 6.1% rise in the S&P 500 .

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