10 Most Promising Biotech Stocks According to Hedge Funds

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

Average Upside: 63.05%

Number of Hedge Fund Holders: 55

Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a biopharmaceutical company focused on developing therapies for rare genetic disorders, with a particular emphasis on neuromuscular conditions such as Duchenne muscular dystrophy (DMD).

Raymond James recently resumed coverage of Sarepta Therapeutics, Inc. (NASDAQ:SRPT) with an Outperform rating and a price target of $150. This follows the company’s full approval of Elevidys, a treatment for DMD in both ambulatory and non-ambulatory patients. Despite this milestone, Sarepta’s stock has been trading lower than before Elevidys’ approval, largely due to reduced speculation around mergers and acquisitions. However, Raymond James expects the launch of Elevidys to outperform expectations, potentially boosting the stock over the next year.

Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is also advancing its treatment for limb-girdle muscular dystrophy (LGMD), which is currently in Phase 3 trials. The company believes the success it has achieved with DMD could be replicated with LGMD, adding further growth potential.

As of Q2 2024, 55 hedge funds tracked by Insider Monkey held positions in Sarepta Therapeutics, Inc. (NASDAQ:SRPT), with stakes totaling $2.4 billion. VenBio Select Advisor holds the largest stake, valued at $474 million.