Morgan Stanley analyst Judah Frommer has maintained their neutral stance on APLS stock, giving a Hold rating yesterday.
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Judah Frommer has given his Hold rating due to a combination of factors surrounding Apellis Pharmaceuticals’ recent performance and future prospects. The company’s Syfovre sales have shown muted growth, aligning with market expectations, but still face challenges such as free drug usage and co-pay assistance issues. These factors contribute to ongoing scrutiny of the company’s commercial dynamics, despite a significant long-term opportunity in geographic atrophy (GA).
While Apellis is optimistic about the expanded label for Empaveli, which has received FDA approval for new indications, the near-term expectations for Syfovre remain modest with low-to-mid-single digit volume growth anticipated. The company’s focus on achieving breakeven with existing cash reserves and the potential for meaningful revenue from Empaveli’s new indications in late 2025 further support the Hold rating. Overall, the combination of these elements suggests a cautious outlook, justifying the Hold recommendation.
Frommer covers the Healthcare sector, focusing on stocks such as Galapagos, RegenXBio, and Arcellx Inc. According to TipRanks, Frommer has an average return of -5.2% and a 47.57% success rate on recommended stocks.
In another report released yesterday, Goldman Sachs also maintained a Hold rating on the stock with a $26.00 price target.