Mizuho has reiterated its Neutral rating on Apellis Pharmaceuticals (NASDAQ: NASDAQ:APLS) with a steady price target of $42.00.
The firm's stance comes ahead of the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) expected final opinion on the approval of Apellis's drug pegcetacoplan (Syfovre) in Europe. The CHMP meeting, scheduled for September 16-19, will be closely watched by investors and industry experts.
The analyst highlighted that although the stock's risk/reward could lean positively on a favorable EU recommendation, and Apellis's shares might appear well-priced following a year-to-date decline of 39% compared to the 11% gain of the XBI index over the same period, caution is advised.
This conservative approach is underpinned by the firm's analysis which assumes only a 10% probability of success for the drug's approval in the upcoming EU update.
Apellis Pharmaceuticals, which is awaiting the critical review of its drug by the CHMP, has witnessed significant volatility in its stock price.
The anticipation builds as the meeting date approaches, with the potential to significantly impact the company's market positioning in Europe.
In other recent news, Apellis Pharmaceuticals has been in the spotlight due to a series of developments. The company's Phase 3 VALIANT trial showcased a significant 68% reduction in proteinuria, a marker of kidney damage, in patients with two rare kidney diseases, C3 glomerulopathy (C3G) and primary immune complex membranoproliferative glomerulonephritis (IC-MPGN).
This has led to positive reactions from several analyst firms. BofA Securities revised its price target for Apellis, reducing it to $61.00 from the previous $66.00, maintaining a Buy rating. Mizuho Securities adjusted its price target to $42.00 from $40.00 while maintaining a Neutral rating. Baird maintained its Outperform rating and increased the stock's price target to $96. Jefferies also maintained a Buy rating and increased the price target to $82.00.
Apellis reported robust growth in Q2 2024, with its drugs SYFOVRE and EMPAVELI performing well. SYFOVRE achieved over $0.5 billion in sales since its launch and $155 million in net product revenue in Q2 2024 alone. EMPAVELI also generated substantial revenue with $24.5 million in sales.
InvestingPro Insights
In light of Apellis Pharmaceuticals' upcoming CHMP meeting, recent data from InvestingPro provides additional context for investors. With a market capitalization of $4.58 billion, Apellis is trading at a high Price / Book multiple of 17.33, reflecting the premium investors are paying for the book value of the company's assets. Despite impressive revenue growth over the last twelve months, up 240.74%, the company is not currently profitable, with an adjusted P/E ratio of -13.83.
InvestingPro Tips suggest that analysts have tempered expectations, with six analysts revising their earnings downwards for the upcoming period and anticipating that the company will not be profitable this year. However, it's worth noting that the company's liquid assets exceed its short-term obligations, indicating a degree of financial stability.
For investors seeking a deeper dive into Apellis Pharmaceuticals' financial health and future prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/APLS. These insights could provide further clarity as the market anticipates the outcome of the CHMP's decision on pegcetacoplan (Syfovre).
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