11 Stocks That Will Bounce Back According to Analysts

5. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)

Year-to-Date Performance: -48.70%

Average Price Target Upside Potential According to Analysts: 156.05%

Number of Hedge Fund Holders: 50

Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a global biotechnology company that is focused on engineering genetic medicine for rare diseases. The company holds leadership positions in Duchenne muscular dystrophy (DMD) and limb-girdle muscular dystrophies (LGMDs). It also has a vast pipeline with more than 40 programs in various stages of development. According to analysts, Sarepta Therapeutics, Inc. (NASDAQ:SRPT) ranks among stocks that will bounce back.

On April 11, Wells Fargo initiated coverage on Sarepta Therapeutics, Inc. (NASDAQ:SRPT) and gave it an “Overweight” rating with a price target of $115. The firm’s analyst, Yanan Zhu, showed confidence in the company’s Duchenne muscular dystrophy (DMD) treatments, including the gene therapy ELEVIDYS. Even after a recent adverse event report, Zhu noted that ELEVIDYS remains the best treatment option for most young DMD patients and that Sarepta Therapeutics, Inc. (NASDAQ:SRPT) has a substantial commercial opportunity ahead. Wells Fargo does not expect major changes to the product’s labeling and sees the recent drop in the stock price as a good chance to invest in SRPT at a value. The $115 price target is based on a discounted cash flow analysis, with most of the company’s value coming from the commercial success of its approved DMD products. These include ELEVIDYS and three exon-skipping drugs. Gene therapy, particularly ELEVIDYS, is expected to be the primary value driver, contributing three times more than the exon-skipping products. Wells Fargo projects global sales for ELEVIDYS to reach $1.6 billion in 2025 and peak sales are estimated at $3.5 billion by 2028.