Wells Fargo analyst Derek Archila maintained a Hold rating on Apellis Pharmaceuticals (APLS – Research Report) today and set a price target of $29.00.
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Derek Archila’s rating is based on a combination of factors influencing Apellis Pharmaceuticals’ current market position and future prospects. While there is optimism surrounding the launch of pegcetacoplan for C3G/IC-MPGN, with physicians indicating a strong potential uptake, there are still uncertainties that warrant a cautious approach. The survey of nephrologists suggests a significant unmet need and a promising market for pegcetacoplan, yet the approval process and the stability of the company’s existing business remain critical considerations.
Despite the potential for pegcetacoplan to capture a substantial market share, concerns about the company’s base business, particularly with Syfovre in geographic atrophy, and its financial capacity to support ongoing growth initiatives, including research and development, are significant. The stock’s performance has been underwhelming, and while the C3G/IC-MPGN launch could be a positive development, a clearer understanding of the risks associated with Syfovre and the company’s financial runway is needed before adopting a more favorable stance. Consequently, Archila maintains a Hold rating, opting to wait for more clarity on these issues before making a more decisive recommendation.
Archila covers the Healthcare sector, focusing on stocks such as Rhythm Pharmaceuticals, aTyr Pharma, and Apellis Pharmaceuticals. According to TipRanks, Archila has an average return of 7.3% and a 47.84% success rate on recommended stocks.
In another report released on May 28, Piper Sandler also maintained a Hold rating on the stock with a $26.00 price target.