Analysts See More Upside For Sarepta Therapeutics

Sarepta Therapeutics Inc SRPT gained more than 60 percent Wednesday on news that it expects to complete an approval application for its lead drug candidate by mid-2015.

The company's shares closed at $26.44, up $10.06.

Sarepta is likely to go "significantly higher over the next several months" according to Baird's Brian P. Skorney, who raised his price target 70 percent to $34, maintaining an Outperform rating.

Skorney said "a sentiment shift/short squeeze" will result as investors come to realize that a regulatory decision in the autumn will determine whether "the stock ends the year sub $10 or over $100."

Canaccord's Adam Walsh boosted his target more than 84 percent to $30 and upgraded Sarepta to Buy from Hold.

While significant approval risks remain for the drug, Walsh expects "powerful advocacy groups" may sway regulators in its favor.

The drug, called eteplirsen, is intended to treat a genetic for of muscular dystrophy that affects children.

"It's not a question of if, but a question of when" the drug gets approved, Walsh said.

The Food and Drug Administration agreed to accept the eteplirsen submission "on a rolling basis" Sarepta said Tuesday.

Oppenheimer's Christopher Marai said the agreement "bodes well" for final approval, which he expects by year end or during the first quarter of 2016.

Marai maintained an Outperform rating and $45 target on Sarepta.