Sarepta Therapeutics, Inc. (SRPT): A Bull Case Theory

We came across a bullish thesis on Sarepta Therapeutics, Inc. on Stock Region Research’s Substack by Stock Region. In this article, we will summarize the bulls’ thesis on SRPT. Sarepta Therapeutics, Inc.'s share was trading at $17.23 as of June 26^th. SRPT’s trailing and forward P/E were 169.47 and 9.84 respectively according to Yahoo Finance.

Sarepta Therapeutics faced a significant setback recently, with its stock plunging over 40% following devastating news from its gene therapy trial. The loss of a second patient has sent shockwaves through the investor community, raising grave concerns about the safety profile of the treatment. This tragic development underscores the inherently high-risk nature of the biotech sector, where the promise of breakthrough therapies often walks hand-in-hand with severe consequences.

Sarepta, previously seen as a frontrunner in gene therapy innovation, now faces a credibility test that could have lasting implications for its pipeline and investor confidence. While some traders may still eye technical levels—with potential upside above $22.15 and downside risks below $21.50—the broader narrative has shifted dramatically.

For many, this incident serves as a sobering reminder that biotech’s high-reward potential can quickly be eclipsed by unforeseen risks. Any meaningful recovery in Sarepta’s valuation will likely depend on strong, transparent reassurances from management regarding the path forward—both in addressing trial safety and rebuilding trust. Until then, sentiment may remain cautious, if not outright skeptical.

Previously we covered a bullish thesis on Sarepta Therapeutics, Inc. by Magnus Ofstad in January 2025, which highlighted the company’s dominant position in the DMD market, robust revenue growth, and acquisition potential amid rising biotech M&A activity. The company’s stock price has depreciated approximately by 85% since our coverage. This is because safety concerns from its gene therapy trial didn’t play out as expected. The thesis still stands as Sarepta’s pipeline and market leadership remain strategically valuable. Stock Region shares a contrarian view but emphasizes the heightened risks and need for management reassurance following recent trial-related setbacks.

SRPT isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of SRPT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.