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Pro Analysis

This hot biotech stock will surge more than 50 percent this year, Leerink analyst says

Sarepta CEO Ed Kaye
Lane Turner | The Boston Globe | Getty Images
Sarepta CEO Ed Kaye

Investors should buy Sarepta Therapeutics shares because its sales this year will come in above the biotech company's guidance, according to Leerink Partners, which upgraded the firm to outperform from market perform.

The FDA granted accelerated approval for Sarepta's Exondys eteplirsen treatment for Duchenne muscular dystrophy last September. The company's shares are up 114 percent in the past 12 months.

"We are upgrading SRPT … now that the stock appears to have fully consolidated and reflects reasonable expectations for the Exondys launch, following management's new revenue guidance ... which looks highly conservative to us," analyst Joseph Schwartz wrote in a note to clients Wednesday.