Biotech's 'New Sweetheart': Janney Upgrades Sarepta To Buy

Shares of Sarepta Therapeutics Inc SRPT soared higher by 80 percent Monday and hit a new 52-week high of $52.30 after the U.S. Food and Drug Administration granted the company with an accelerated FDA approval for its Eteplirsen drug.

Related Link: Sarepta's Eteplirsen Receives Accelerated FDA Approval, Shares Soar 80%

Following the FDA's announcement, analysts at Janney Capital upgraded Sarepta's stock to Buy from Neutral with a new $65 price target.

The analysts highlighted Sarepta's global market opportunity of around 4,000 patients worldwide, which could yield peak sales in excess of $1 billion. The company also received the pediatric review voucher which "limits potential dilution over the near-term."

The analysts suggested that Sarepta is the biotech sector's "new sweetheart" as it can now play a role in treating patients suffering from DMD.

Bottom line, the analysts expect shares of Sarepta to move higher given the "limited data events" that could "derail" the stock between now and the eteplirsen data readout during the fourth quarter of 2020.

Shares traded recently at $49.71, up 76 percent.