Credit Suisse Joins Consensus To Prescribe Sarepta

The Street has a lot of faith in Sarepta Therapeutics, Inc. SRPT. The biotech firm notched its 20th bullish rating Thursday to further neutralize a lone Hold.

The Rating

Credit Suisse analysts Martin Auster, Mark Connolly and Tiago Fauth initiated coverage on Sarepta with an Outperform rating and a $178 price target.

The Thesis

Credit Suisse’s sum-of-the-parts analysis indicates significant upside opportunity for the Duchenne muscular dystrophy combatant.

“Despite high expectations for the DMD gene therapy program, we see room for continued share appreciation as the program develops,” Auster, Connolly and Fauth wrote in a note. “While we expect initial data from all three clinical stage gene therapy programs likely will demonstrate robust dystrophin expression in skeletal muscle, we think SRPT’s first mover advantage and strong initial data sets a high bar and a strong competitive position.”

The analysts expect Sarepta to release DMD gene therapy data in October, with Pfizer Inc. PFE and Solid Biosciences Inc SLDB following in 2019. The “first mover” is modeled to seize a 50-percent market share in with peak sales near $4 billion and annual recurring revenue of $1.5 billion.

Credit Suisse sees Sarepta’s DMD gene therapy representing $99 per share and PMO and PPMO candidates contributing between $35 and $60.

Price Action

Sarepta shares traded up about 1.4 percent to $142.76 at time of publication.

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