Analyst: Solid Biosciences A Solid Buy On Sarepta's Progress

The Street grew more bullish on Solid Biosciences Inc SLDB last week following progress announcements on Solid and peer candidates. At least three analysts raised their valuation targets:

The Rating

Chardan analyst Gbola Amusa maintained a Buy rating on the stock, but increased his price target from $37.50 to $60.

The Thesis

Amusa was inspired by both the mid-June removal of a clinical hold on SGT-001 and encouraging trial data from Solid, Sarepta Therapeutics Inc SRPT and Pfizer Inc. PFE proving the efficacy of AAV-based gene therapies in Duchenne muscular dystrophy.

“Positive early data from clinical trials from 3 different companies, to us, supports the utility of microdystrophin GT in a devastating disease with no effective approved therapies,” Amusa wrote in a note.

The analyst reiterated preference for Solid over Sarepta or Pfizer for its “superior” microdystrophin construct, vector and trial design.

Based on the study developments, Chardan anticipates launch of AAV-based therapies in 2022 rather than the previously estimated 2023, with 66.5 percent adoption among U.S. DMD patients by 2030.

With Solid expected to seize 25 percent to 37.5 percent of that market, Amusa forecasts 2024 sales of SGT-001 at $2.76 billion.

Price Action

Shares last closed at $42.07.

Related Links:

Goldman Sachs Gets Firm On Solid Biosciences

Analyst: Sarepta's DMD Gene Therapy Results 'Dramatic And Far Exceeding Expectations'