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Investing.com - Mizuho (NYSE:MFG) has raised its price target on Apellis Pharmaceuticals (NASDAQ:APLS) to $21.00 from $20.00 while maintaining a Neutral rating following the approval of Empaveli for rare kidney diseases. The biotech company, with a market capitalization of $2.37 billion and impressive revenue growth of 48% over the last twelve months, appears undervalued according to InvestingPro analysis.
The price target increase comes after the U.S. Food and Drug Administration approved Empaveli (pegcetacoplan) for the treatment of C3 glomerulopathy/C3G and immune complex membranoproliferative glomerulonephritis/IC-MPGN, as announced by the company. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 4.08, indicating robust financial flexibility to support the drug’s commercialization.
Mizuho cited the approval as a de-risking event, prompting the firm to increase its probability of success assumption for Empaveli in these indications to 100% from the previous 90%, resulting in the 5% price target increase.
The firm noted it was "pleased to see a very broad label for Empaveli" following the company’s call discussing the approval, though Mizuho’s revenue expectations for both Syfovre and Empaveli remain below consensus ahead of Apellis’ upcoming second-quarter 2025 results.
Apellis shares rose 1-3% intraday following the Empaveli approval news, with Mizuho maintaining that the risk/reward balance for the stock remains balanced at current levels. Analyst targets range from $17 to $60, with a consensus recommendation of "Buy." For deeper insights into Apellis’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Apellis Pharmaceuticals received FDA approval for EMPAVELI® (pegcetacoplan) as the first treatment for C3 glomerulopathy (C3G) and primary immune complex membranoproliferative glomerulonephritis (IC-MPGN) in patients aged 12 and older. This approval expands the drug’s potential market and marks a significant milestone for patients with these rare kidney diseases, which affect approximately 5,000 individuals in the United States. The Phase 3 VALIANT study demonstrated EMPAVELI’s efficacy, showing a 68% reduction in proteinuria and stabilization of kidney function. Cantor Fitzgerald reiterated an Overweight rating on Apellis stock with a $39.00 price target following the FDA approval. H.C. Wainwright also maintained a Buy rating with a $57.00 price target after discussions with Apellis executives about market strategies for their product, Syfovre. Meanwhile, William Blair continues to hold an Outperform rating on Apellis amid competitive pressures from Astellas’s Izervay, which reported a 22% revenue increase in the second quarter. These developments highlight Apellis’s ongoing efforts to solidify its position in the market.
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