So I'm in long because upside looks like it's there with a limited downside.
"Based on the Q2 2025 earnings release, Sarepta Therapeutics demonstrated strong financial performance, beating EPS and revenue estimates, driven by ELEVIDYS and PMO franchise sales. The company’s cost-saving measures and optimistic H2 guidance suggest a path to recovery, but risks from the lawsuit and ELEVIDYS safety concerns warrant caution. Using forward P/E and P/S valuations, and considering analyst targets, I estimate a fair market value for SRPT stock of $50.00–$75.00 per share, with a midpoint of ~$62.50. This is significantly above the current price of $16.75, suggesting the stock may be undervalued due to temporary negative sentiment, but investors should monitor lawsuit developments and ELEVIDYS safety updates closely.
Recommendation: The stock appears undervalued for long-term investors with high risk tolerance, but short-term volatility is likely due to legal and regulatory risks. Conduct further due diligence, especially regarding the lawsuit and ELEVIDYS safety data, before investing.
Disclaimer: This analysis is for informational purposes only and not investment advice. Always consult a financial advisor and conduct your own research before making investment decisions."