The recent sell-off in shares of Sarepta Therapeutics looks "overdone," according to Citi. Analyst Neena Bitritto-Garg initiated coverage of the biotechnology stock with a buy rating, saying in a Tuesday note to clients that a positive vote from a Food and Drug Administration advisory committee on its SRP-9001 investigational gene therapy for Duchenne muscular dystrophy could provide $30 to $40 in upside per share. "Though AdCom meetings do increase risk/volatility into a PDUFA date, we like the setup for shares from here, as we believe the AdCom vote could be positive if focus is on benefit/risk and the relationship between SRP-9001 microdystrophin expression and clinical endpoints," she wrote. Shares of Sarepta Therapeutics fell about 20% one day last month after regulators said they would hold an advisory committee meeting for SRP-9001, walking back previous plans to assess it without one. The move fueled some concerns among investors regarding the approval process. The stock is still more than 6% higher for the year. Despite these fears, Bitritto-Garg thinks an advisory committee was always in the cards for the treatment, but difficult to obtain as the FDA's Office of Therapeutic Products grappled with a restructuring and lack of resources. SRPT YTD mountain Shares so far this year She added that an advisory committee "may not be indicative of a meaningful change in FDA's position on the filing." Along with the buy rating, Bitritto-Garg slapped a $179 price target on the stock, implying 30% upside from Monday's close. — CNBC's Michael Bloom contributed reporting
