This Analyst Sees 34% Upside For SRPT Stock — Here's Why They Expect A Sustained Rally Next

• Wolfe Research said Sarepta's recent share price gains have been "transient," but believes the stock is positioned for a more sustained move higher.
• The firm pointed to several potential catalysts, including expected multiple ascending-dose data in the second half of the year and readthrough from Novartis’ neuromuscular disease programs.
• Wolfe also highlighted growing investor interest in myotonic dystrophy type 1 and facioscapulohumeral muscular dystrophy as other potential catalysts.

Sarepta Therapeutics Inc. (SRPT) shares were in focus on Thursday after a new analyst upgrade as Wall Street keeps an eye on multiple potential catalysts and readthrough from Novartis AG (NVS).

According to TheFly, analysts at Wolfe Research upgraded Sarepta to ‘Outperform’ from ‘Peer Perform,’ with a price target of $27. This implies a potential upside of about 34% from Wednesday’s closing price.

Sarepta shares were up nearly 2% in Thursday’s pre-market trade. SRPT was among the top trending tickers on Stocktwits at the time of writing.

Why Wolfe Is Bullish On SRPT

Wolfe Research said Sarepta's recent share price gains have been "transient," but believes the stock is positioned for a more sustained move higher under the current market backdrop and its improving technical setup.

The firm pointed to several potential catalysts, including expected multiple ascending dose (MAD) data in the second half of the year, readthrough from Novartis’ neuromuscular disease programs, and growing investor interest in myotonic dystrophy type 1 (DM1) and facioscapulohumeral muscular dystrophy (FSHD).

According to the firm, these developments could help drive renewed momentum for Sarepta shares.

The expected readthrough stems from Novartis' clinical programs in DM1 and FSHD, both of which Sarepta is also targeting.

SRPT Seeks Permanent FDA Nod For Duchenne Therapies

Last week, Sarepta sought permanent approval from the U.S. Food and Drug Administration (FDA) for two therapies for Duchenne muscular dystrophy.

Sarepta said that the FDA set a Prescription Drug User Fee Act (PDUFA) target action date of Feb. 28, 2027, for its supplemental new drug applications (SNDA) seeking to convert the accelerated approvals of AMONDYS 45 and VYONDYS 53 into full approvals, supported by data from the ESSENCE confirmatory study and real-world evidence.

However, HC Wainwright analyst Mitchell Kapoor maintained a ‘Sell’ rating and a $5 price target on Sarepta.

She said that while the PDUFA date removes near-term administrative uncertainty, the firm said the acceptance does not signal regulatory momentum, noting the ESSENCE study missed its confirmatory primary endpoint.

What Retail Traders Think Of SRPT Stock

Retail sentiment on Stocktwits around Sarepta trended in ‘bearish’ territory at the time of writing.

SRPT stock is down 6% year-to-date, while NVS stock is up 12%. The iShares Core S&P Small-Cap ETF (IJR) is up 28% over the past 12 months, while the State Street SPDR S&P Biotech ETF (XBI) is up 92%.

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