Selected stock price target news of the day - June 26, 2023

By Matthew Otto

FDA Approves Sarepta’s Gene Therapy for Duchenne Muscular Dystrophy But with Conditions

The U.S. Food and Drug Administration (FDA) has given its approval to Sarepta Therapeutics‘ gene therapy, Elevidys, marking it as the first-ever gene therapy to treat Duchenne muscular dystrophy (DMD). This progressive and fatal condition appears in early childhood and gradually weakens the muscles. Elevidys, priced at $3.2 million for a one-time treatment, is among the world’s most expensive medicines. Sarepta adopted a bold strategy by seeking accelerated approval for the drug, using preliminary data showing that the therapy allows patients to produce a protein related to muscle growth.

However, the FDA’s approval came with certain restrictions and warnings. The approval only applies to children between the ages of 4 and 5 who can still walk, a much narrower demographic than the 4 to 13 age range Sarepta initially tested and sought approval for. Additionally, the FDA issued a warning that it might withdraw its approval if the results of the ongoing Phase 3 EMBARK trial do not turn out positive.

Analysts Give Mixed Reviews on Sarepta Therapeutics Following FDA Approval of Elevidys

Neena Bitritto-Garg, a Citigroup analyst maintains a Buy rating, but has lowered the price target from $204 to $161.
Kristen Kluska from Cantor Fitzgerald keeps an Overweight rating and raised the price target from $153 to $166.
Salveen Richter from Goldman Sachs maintains a Buy rating and raises the price target from $188 to $215.
Anupam Rama, JP Morgan analyst, continues to endorse an Overweight rating but slightly lowered the price target from $217 to $213.
Matthew Harrison from Morgan Stanley reaffirms an Overweight rating, maintaining a $183 price target.
Brian Abrahams, RBC Capital analyst reiterates an Outperform rating and maintains a $218 price target.
Judah Frommer from Credit Suisse sticks with a Neutral rating and maintains a $141 price target.
Gavin Clark-Gartner, analyst from Evercore has downgraded Sarepta Therapeutics from Outperform to Neutral and announces a $139 price target.

Analyst Brian Skorney (BAIRD) has currently the highest performing score on SRPT with 38/50 (76%) price target fulfillment ratio. His price targets carry on an average of $38.05 (75.14%) potential upside and are fulfilled within an average of 305 days.

Sonic Automotive Restructures Operations and Aims for Enhanced Profitability

Sonic Automotive has made changes to navigate the current challenging conditions in the pre-owned vehicle market. In a strategic move, the company has indefinitely suspended operations at eight EchoPark locations and associated Delivery/Buy Centers. This step aims to focus Sonic’s resources on key markets to meet existing demand more efficiently.

The company is striving to ensure EchoPark’s agility, enabling it to adapt swiftly to fluctuating market conditions. Sonic predicts that price volatility will persist into 2024, even though there have been signs of improvement in pre-owned wholesale pricing. Looking ahead, Sonic expects increased production of new vehicles over the next 12-18 months.

Analysts Give Mixed Ratings to Sonic Automotive

Daniel Imbro from Stephens & Co. has reiterated an Overweight rating and maintains a price target of $55.
Rajat Gupta from JP Morgan maintains a Neutral rating but has raised the price target from $50 to $52.

Analyst Rajat Gupta (JPMORGAN) has currently the highest performing score on SAH with 11/12 (91.67%) price target fulfillment ratio. His price targets carry on an average of $7.1 (20.14%) potential upside and are fulfilled within an average of 123 days.

Vertex Pharmaceuticals and Lonza Announce Collaboration to Advance Stem Cell-Derived Therapies for Type 1 Diabetes

Vertex Pharmaceuticals and Lonza have announced a strategic collaboration to support the manufacture of Vertex’s investigational stem cell-derived islet cell therapies for individuals with Type 1 diabetes (T1D). The collaboration focuses on Vertex’s VX-880 and VX-264 programs, which have shown promising results in clinical trials. The partnership involves process development, scale-up, and the construction of a dedicated facility in New Hampshire, operated by Lonza. This collaboration leverages Lonza’s expertise in cell and gene technologies and is expected to accelerate the development and commercialization of Vertex’s transformative therapies.

Analysts Reiterate Buy Rating on Vertex Pharmaceuticals

HC Wainwright analyst Andrew Fein reiterates Buy rating and a $380 price target.
Liisa Bayko from Evercore ISI raises her price target to $379.

Analyst Do Kim (PIPER SANDLER) has currently the highest performing score on VRTX with 32/35 (91.43%) price target fulfillment ratio. His price targets carry on an average of $19.8 (11.72%) potential upside and are fulfilled within an average of 169 days.