Do Analysts See Any Upside for Sarepta Stock?

Analysts’ recommendations

Of the 23 analysts covering Sarepta Therapeutics (SRPT), 22 have given it “buy” or higher ratings, and one has given it a “hold.”

Analysts’ mean rating for Sarepta stock is 1.65, and their target price is $195.43, implying a potential 89.5% upside for the stock based on its December 19 closing price of $103.11.

Do Analysts See Any Upside for Sarepta Stock?

Peers’ ratings

In comparison, peers Pfizer (PFE), Regeneron (REGN), and Vertex Pharmaceuticals (VRTX) have received mean ratings of 2.72, 2.58, and 1.84, respectively, and target prices of $44.15, $426.05, and $201.82, respectively, from analysts.

Sarepta’s current ratio, which shows how effectively it can meet its short-term obligations, is 8.80x. In comparison, Pfizer’s, Regeneron’s, and Vertex’s current ratios are 1.40x, 4.0x, and 3.70x, respectively.

Stock performance

After a stellar rise from $55.14 on February 9 to a high of $161.51 on September 28, Sarepta stock corrected to $111.99 on November 14. Since then, after initial buying interest took it to $130.97 on December 3, Sarepta stock has again corrected to its current $103 level amid broader market fluctuations.

In the third quarter, Sarepta’s average number of outstanding shares increased YoY to ~66.21 million from ~61.53 million. Its outstanding shares totaled ~42.29 million in 2015 and ~48.7 million in 2016. This number is expected to increase to ~71.35 million in 2020, indicating shareholder dilution.

Sarepta’s long-term debt-to-equity ratio is 0.65x, whereas its peers Pfizer, Regeneron, and Vertex have debt-to-equity ratios of 0.47x, 0.09x, and 0.20x, respectively.