A Biotech's Stock Just Hit Year High. This Analyst Expects It To Jump Another 16%

• Morgan Stanley raised the price target on Sarepta Therapeutics Inc (NASDAQ: SRPT) with an equal weight rating.

• The analyst notes concerns regarding the Phase 3 EMBARK study, with a modest probability of success (60%) for that study. He also acknowledges that the option value associated with an early filing is not yet fully reflected in SRPT.

• "We see a likely October filing and thus December acceptance as the key catalyst for SRPT into year-end," writes the analyst.

• The question looms whether the FDA wants to approve the treatment ahead of Phase 3 data.

• Related: FDA Lifts Clinical Hold On Sarepta's Dose-Expansion Part Of Duchenne Trial.

• If management is granted priority review (based on the regulatory standard, SRP-9001 should qualify), the PDUFA would likely be ~3-6 months ahead of the Phase 3 results.

• Thus, Morgan Stanley expects investors to view the granting of priority review as a positive and will continue to increase the option value reflected in the stock, as high as $150 (assuming the filing is accepted and priority review is granted).

• Assuming approval, Sarepta could be over $200 and ~$75-85 if FDA defers until Phase 3 results.

• Price Action: SRPT shares are up 4.03% at $117.46 on the last check Thursday.

Latest Ratings for SRPT

Date	Firm	Action	From	To
Mar 2022	Morgan Stanley	Maintains		Equal-Weight
Mar 2022	RBC Capital	Maintains		Outperform
Feb 2022	Morgan Stanley	Maintains		Equal-Weight

View More Analyst Ratings for SRPT

View the Latest Analyst Ratings

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