BMO Capital analyst Kostas Biliouris reiterated a Market Perform rating and $50.00 price target on Sarepta Therapeutics (NASDAQ: SRPT)

The analyst comments "

Following SRPT's recent safety updates (thoughts here, here) and FDA interactions (thoughts here), we conducted a quick buy-side survey (N=21), results indicate: (1) On ambulatory, ~50% of investors expect Elevidys to stay in market; on non-ambulatory 90% of investors believe Elevidys won't stay in the market; (2) ~85% of investors rate mgmt's credibility as ≤2/10; (3) SRPT's financial health or story turnaround will be challenging. We expect the volatility to continue near-term (YTD plot below). On ambulatory, ~50% of investors expect Elevidys to stay in the market (left Exhibit). "Other" responses include that Elevidys may be paused for some time and resume. On non-ambulatory, 90% of investors expect FDA to pull Elevidys' approval (right Exhibit). Following lack of LGMD death disclosure during SRPT's 7/16 conference call, 85% of investors rate mgmt's credibility as ≤2/10: ~75% of investors don't expect DM1/FHSD readout in 2H to turn SRPT story around, suggesting a challenging road to recovery (left Exhibit below). "Other" responses (14%) include potential loss of Elevidys/PMO revenues, anticipated SEC/investor lawsuits around delayed disclosure of LGMD death, uncertainty around mgmt's ability to meet ARWR milestone payments. Separately, ~55% of investors expect SRPT to be unable to meet EBITDA requirements to maintain $600M revolver access and repay 2027 notes (right Exhibit below). 14% of investors ("Other") are uncertain about SRPT's ability to maintain revolver access."

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Shares of Sarepta Therapeutics closed at $14.08 yesterday.