Latest news with #stockdowngrade
Yahoo
17 hours ago
- Business
- Yahoo
Sarepta stock faces multiple downgrades and questions of solvency amid Elevidys pause
Sarepta Therapeutics' (SRPT) stock has been hammered in the past week after the company was forced to pause shipments of its top-selling Duchenne muscular dystrophy (DMD) therapy Elevidys — throwing the future of the company into question. Elevidys netted $821 million of the company's $1.78 billion in 2024 revenue and contributed to more than 50% of the company's $513 million in second quarter revenue this year. It's the company's top-selling product. It's why seven analysts have downgraded the stock since Friday, including Bank of America's Tazeen Ahmad on Wednesday. Ahmad downgraded the stock to Underperform and revised the firm's price target to $10 from $20. The stock is currently trading at $13.90 per share and closed down more than 2% on Wednesday. Sarepta "has requested a meeting with FDA and might have more visibility on length of the pause once FDA responds to their submission for a revised label," Ahmad wrote in a note to clients. "In short, we think this could impact the Elevidys brand further, limiting uptake following highly focused media attention as well as a renewed chance of Elevidys being removed from the US market." Leerink Partners downgraded the stock last week from Outperform to Market Perform. Analyst Joseph Schwartz wrote in a note to clients on Monday that how long the pause lasts is important for future modeling. "This decision is also roughly aligned with our published SRPT model, which assumes a significant slowing of sales in the third quarter, zero sales in the fourth quarter, and a resumption of shipments in early 2026," Schwartz wrote. "We lack visibility into how long this pause may last, or what the intermediate scenarios are from here (e.g., a narrower approval)." The stock now has five Buy, 17 Hold, and four Sell ratings. Domino effect The technology to deliver the therapy in Elevidys is at the center of the issue facing the company. A 51-year-old, late-stage patient in a phase 1 trial of a different muscular dystrophy therapy, known only by its trial name, SRP-9004, died from liver toxicity last month, but Sarepta failed to disclose the death — even as it announced it was discontinuing the trial as part of a restructuring last week. That began the domino effect of downgrades and the stock sell-off as analysts questioned why the company had kept quiet. On a call with investors Friday, CEO Doug Ingram defended his reasoning for not mentioning it. "We did not discuss this matter in our call on Wednesday because it was neither material nor central to the topics at hand on Wednesday," Ingram said. In a note following the call, Leerink's Schwartz wrote, "Is This Material?!? All Credibility Lost." It's the third death linked to a gene therapy from the company this year and a reason why the FDA previously required the company to add new warning labels to Elevidys, which is part of the pause in shipments currently. But now, the company's future is in flux as its revenue stream has been paused for an undetermined amount of time. Jefferies analyst Andrew Tsai, one of the few who has maintained a Buy rating, said the company could defend the therapy as sicker and older patients have been more negatively impacted, while younger patients who are still able to move independently have benefited. "Prior to the third death, SRPT's internal stress tests suggested the DMD franchise could 'floor' at $1.4B annually into 2027, including $500M+ for Elevidys in ambulatory," Tsai wrote in a note to clients Sunday. "For Elevidys, one can point to how the deaths have occurred only in older patients." "More cost reductions is possible too," Tsai noted of how Sarepta could end up handling the hit. Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Click here for in-depth analysis of the latest health industry news and events impacting stock prices
Yahoo
4 days ago
- Business
- Yahoo
TD Cowen Downgrades Fortive Corporation (FTV) Stock
Fortive Corporation (NYSE:FTV) is one of the TD Cowen downgraded the company's stock to 'Hold' from 'Buy' with a price objective of $50, down from the prior target of $85, as reported by The Fly. Following the spinoff of Ralliant, the thesis on the new Fortive becomes less clear, noted the firm's analyst. The firm mentioned the concerns related to the company's growth trajectory, highlighting that Fortive Corporation (NYSE:FTV)'s strongest business unit has been decelerating post a period of strong performance, with other segments struggling to cater to the expectations and lagging behind competitors. A technician checking a calibration tool in a laboratory environment. As per Fortive Corporation (NYSE:FTV)'s top management, the new Fortive emerges with a robust financial track record with strong FCF generation, ~50% recurring revenue, significant competitive advantages, and a strategic orientation towards attractive markets with healthy secular tailwinds. The renewed emphasis towards accelerating profitable growth via Fortive Business System, together with a new shareholder returns-focused capital allocation strategy, provides the company confidence in delivering strong returns. While we acknowledge the potential of FTV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
5 days ago
- Business
- Yahoo
KeyBanc Downgrades Simulations Plus (SLP) Stock to Sector Weight
Simulations Plus, Inc. (NASDAQ:SLP) is one of the KeyBanc downgraded the company's stock to 'Sector Weight' from 'Overweight' without a price target, as reported by The Fly. The downgrade from the firm highlighted ongoing challenges in the biopharma end market environment, which the firm opines impacts Simulations Plus, Inc. (NASDAQ:SLP) more severely because of the customer concentration and biotech exposure. Furthermore, the firm expects weaker customer demand to continue in the near-to-middle-term. A close-up view of a scientist's hand pressing keys on a laptop as another looks closely at a 3-D model on a large monitor. In Q3 2025, Simulations Plus, Inc. (NASDAQ:SLP)'s revenue increased by 10%, in line with its preliminary revenue. The company's software revenue performed well, increasing 6%, mainly because of its ADMET Predictor® software and due to modest growth in its GastroPlus® and MonolixSuiteTM software. Furthermore, the services revenue for Q3 2025 increased 17%, primarily because of strong performance in the Medical Communications services. During Q3 2025, Simulations Plus, Inc. (NASDAQ:SLP) implemented a strategic reorganization, pivoting from a business unit structure to a functionally driven operating model. This was the final phase of a multi-year transformation in order to streamline operations, unlock synergies, and concentrate resources towards the promising growth opportunities. For FY 2025, Simulations Plus, Inc. (NASDAQ:SLP) expects revenue of between $76 million – $80 million. Wasatch Global Investors, an asset management company, released its Q3 2024 investor letter. Here is what the fund said: 'Simulations Plus, Inc. (NASDAQ:SLP) was the strategy's largest detractor from performance during the quarter. The company develops and produces software that helps pharmaceutical companies achieve efficiencies in the drug discovery process by enabling them, through simulations, to either fine-tune or avoid clinical trials, which are expensive and have a high failure rate. Simulations Plus has a long track record of delivering consistent growth and margin expansion. However, the stock has been down due to concerns about the funding environment for biotechnology and pharmaceutical companies. We reduced our position in Simulations Plus over concerns linked to the company's recent acquisition strategy, which we will continue to monitor. However, we remain confident in the growth potential of the company's core business.' Simulations Plus, Inc. (NASDAQ:SLP) is in the software industry. It is engaged in developing and producing software for use in pharmaceutical research and for education, and offers consulting as well as contract research services to the broader pharmaceutical industry. While we acknowledge the potential of SLP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
TD Cowen Downgrades Fortive Corporation (FTV) Stock
Fortive Corporation (NYSE:FTV) is one of the TD Cowen downgraded the company's stock to 'Hold' from 'Buy' with a price objective of $50, down from the prior target of $85, as reported by The Fly. Following the spinoff of Ralliant, the thesis on the new Fortive becomes less clear, noted the firm's analyst. The firm mentioned the concerns related to the company's growth trajectory, highlighting that Fortive Corporation (NYSE:FTV)'s strongest business unit has been decelerating post a period of strong performance, with other segments struggling to cater to the expectations and lagging behind competitors. A technician checking a calibration tool in a laboratory environment. As per Fortive Corporation (NYSE:FTV)'s top management, the new Fortive emerges with a robust financial track record with strong FCF generation, ~50% recurring revenue, significant competitive advantages, and a strategic orientation towards attractive markets with healthy secular tailwinds. The renewed emphasis towards accelerating profitable growth via Fortive Business System, together with a new shareholder returns-focused capital allocation strategy, provides the company confidence in delivering strong returns. While we acknowledge the potential of FTV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
SoundHound AI (SOUN) Downgraded: What Investors Need to Know Now
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the . On July 14, Piper Sandler analyst James Fish downgraded the stock from Overweight to 'Neutral' with a price target of $12. The firm said it sees a tough setup for the AI company, particularly for the second half of 2025. 'We are downgrading shares of SoundHound from OW to Neutral but reiterating our $12 price target.' The firm noted that even though there is long-term potential for SoundHound, some deals may be pushed into 2026 for the company. The company is currently facing a challenge in trying to achieve profitability while also investing in its Amelia product line. Achieving both these goals effectively, the firm highlighted, can be a challenge for the company. The firm is particularly concerned about how pressure on second-half estimates may negatively impact SoundHound's valuation multiple. Currently, it exceeds 20 times the calendar year 2026 estimates. Piper Sandler is constructive on the company's long-term opportunities regardless of the downgrade, but also acknowledges that execution in the second half of 2025 'could create a squeeze on shares.' SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses. While we acknowledge the potential of SOUN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
