Needham & Company analyst Chad Messer lowered its price target on Sarepta Therapeutics (NASDAQ: SRPT) to $75.00 (from $78.00) while maintaining a Buy rating, as management offered guidance that appears too conservative, while delivering 2016 fourth quarter Exondys revenues of $5.1mm.

Messer comments, "As previously reported, Sarepta earned $5.4M in 4Q16 Exondys revenue. The company gave 1Q and FY17 guidance for Exondys sales of $13-15M and >$80M, respectively. While the 1Q guidance number is relatively in line with our ($17M) and the Street's estimates, the low end of FY17 guidance is significantly below expectations and implies no acceleration in new patient starts through the back part of 2017. This sales guidance contrasts with management's qualitative commentary about accelerating conversion rates and we believe is explained by conservatism in an uncertain and dynamic reimbursement environment. We continue to expect that the majority of the 1,400+ eligible DMD boys in the US will ultimately be on therapy by implying a ~$400M Exondys US sales run rate."