But since then controversial, which turned off some investors and created a high level of short interest, Oppenheimer's Hartaj Singh commented in a research report. Nevertheless, the company has managed to release encouraging data on the therapy's effectiveness which may not necessarily be reflected in the stock's current valuation.
In fact, should Sarepta be acquired at current levels it would be at "bargain" prices, the analyst continued. Specifically, the stock is trading at a 50 to 75 percent discount to recent M&A deals in the space.
A larger company would be able to achieve a return on investment at current valuation levels (plus premium) based on the worldwide Exondys franchise and get the rest of the company for free, Singh emphasized.
"This is an expectation asymmetry we believe should be arbitraged away by investors," the analyst concluded.
Related Links:
Sarepta Under Pressure As FDA Approves Marathon Pharma's Emflaza For DMD Treatment
Sarepta Under Pressure Amid Concerning Exondys 51 Survey Results
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.