Sarepta Therapeutics (SRPT) stock surged 5.75% in intraday trading on Tuesday, following the U.S. Food and Drug Administration's (FDA) decision to allow the company to resume shipments of its gene therapy, Elevidys, for ambulatory patients with Duchenne muscular dystrophy (DMD).

The FDA's recommendation to lift the voluntary pause on Elevidys shipments came after the agency's investigation found that a recent patient death in Brazil was unrelated to the treatment. This decision is a significant relief for Sarepta, as it removes the immediate risk of the therapy being withdrawn from the market and alleviates concerns about the company's near-term liquidity.

Analysts reacted positively to the news, with several upgrading their ratings and raising price targets for Sarepta. Barclays upgraded the stock to Equal Weight from Underweight, while Oppenheimer raised its rating to Outperform. The resumption of Elevidys shipments is expected to boost Sarepta's revenue and improve its financial outlook.

However, some analysts caution that there may still be skepticism towards the use of the therapy in light of recent safety concerns. The company will need to rebuild confidence among patients, doctors, and investors in the coming months. Additionally, shipments to non-ambulatory patients remain paused, which could limit the therapy's market potential in the short term.