Sarepta downgraded as part of portfolio rebalancing at Morgan Stanley - InvestingChannel

Sarepta downgraded as part of portfolio rebalancing at Morgan Stanley

As previously reported, Morgan Stanley analyst Matthew Harrison downgraded Sarepta (SRPT) to Equal Weight from Overweight as part of a rebalancing after a “strong run” for small-to-mid cap biotech stocks. He believes the next move higher in Sarepta will be driven by success in gene therapy, where he does not believe he has an edge in calling the outcome, Harrison tells investors. However, he also noted that initial signals from Sarepta’s gene therapy program are promising with no safety issues and that his downgrade is not based on a specific concern around the program. He raised his price target on Sarepta shares to $87 from $64. Harrison also downgraded Loxo Oncology (LOXO) and Global Blood Therapeutics (GBT) as part of the rebalancing, citing valuation.

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