Brutal 2025 for Sarepta—Analysts Still Call for 179% Upside

Core Viewpoint - Sarepta Therapeutics has faced significant challenges in 2025, with a dramatic decline in share value due to patient deaths linked to its FDA-approved gene therapy, ELEVIDYS, despite generating over $1 billion in revenue since its approval in June 2023 [1][2]. Financial Performance - As of August 11, 2025, Sarepta's shares have dropped over 85% this year, with a market capitalization falling from approximately $11.61 billion to $1.75 billion [2][6]. - The company reported that 54% of its net product revenue in fiscal 2024 came from products other than ELEVIDYS, indicating diversified revenue streams [7]. FDA Interactions - The FDA initially requested Sarepta to halt shipments of ELEVIDYS after multiple patient deaths were reported, leading to a 36% drop in share price [3]. - Following an investigation, the FDA reversed its request, allowing Sarepta to resume sales to ambulatory patients, who represent 70% to 85% of ELEVIDYS patients [4]. Market Sentiment and Analyst Predictions - Following the FDA's reversal, Sarepta's shares increased by 50% as of August 11, reflecting improved market sentiment [5]. - Analysts from Wells Fargo and BMO Capital Markets have set price targets of $50, suggesting a potential upside of around 179% from the current share price [2]. Valuation Metrics - Sarepta's stock is currently trading at a forward price-to-sales (P/S) ratio of 1.2x, significantly lower than the median P/S ratio of 4.3x among U.S. large-cap pharma and biotech stocks, indicating it may be undervalued [7]. Competitive Landscape - Sarepta faces competition from other companies developing DMD therapies, such as Solid Biosciences, which has a treatment in early-stage trials that may mitigate some risks associated with ELEVIDYS [10][11].