NEW YORK (TheStreet) -- Sarepta Therapeutics (SRPT) shares are up 3.5% to $21.30 on Wednesday after analysts at Credit Suisse initiated coverage on the stock with a "buy" rating and $36 price target.
The price target represents a 69% upside from the stocks current price.
The optimistic outlook is based on the firm's belief that the company's genetic degenerative muscle disease treatment eteplirsen will achieve accelerated approval from the FDA within the next 12-18 months and advised investors to "accumulate SRPT ahead of the expected spring FDA Advisory Committee meeting."STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Separately, TheStreet Ratings team rates SAREPTA THERAPEUTICS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SAREPTA THERAPEUTICS INC (SRPT) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 77.8% when compared to the same quarter one year ago, falling from -$19.05 million to -$33.87 million.
- Net operating cash flow has significantly decreased to -$39.50 million or 229.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.88%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 41.66% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- SAREPTA THERAPEUTICS INC's earnings per share declined by 41.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SAREPTA THERAPEUTICS INC continued to lose money by earning -$3.39 versus -$4.95 in the prior year. For the next year, the market is expecting a contraction of 3.8% in earnings (-$3.52 versus -$3.39).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, SAREPTA THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: SRPT Ratings Report