Canaccord maintains Buy on Apogee stock, $89 price target

Published 14/05/2025, 12:48
Canaccord maintains Buy on Apogee stock, $89 price target

On Wednesday, Canaccord Genuity maintained its Buy rating on Apogee (NASDAQ:APOG) Therapeutics Inc (NASDAQ:APGE) with a steady price target of $89.00. Currently trading at $39.74, the stock sits well below the consensus analyst targets ranging from $78 to $116. According to InvestingPro data, analysts maintain a Strong Buy consensus, with multiple analysts recently revising earnings estimates upward. Edward Nash of Canaccord Genuity expressed confidence in the biotechnology company’s financial footing and its ongoing clinical trial progress. Apogee recently reported its financial outcomes and business advancements for the first quarter of 2025, highlighting its strong balance sheet. The company’s cash reserves, including cash equivalents and marketable securities, stood at $681.4 million.

Nash noted that Apogee is well-positioned to continue its operations well into the first quarter of 2028, based on its current financial resources. InvestingPro analysis confirms the company’s strong financial position, with a robust current ratio of 15.82 and more cash than debt on its balance sheet. The focus is now on the forthcoming interim Part A 16-week data from the Phase II APEX trial for atopic dermatitis (AD), slated for release in mid-2025. This data is eagerly anticipated as it could be a significant milestone for the company’s clinical development efforts.

The strategic approach of Apogee’s management was also mentioned, with the suggestion that the company may seek additional funding based on the strength of its clinical data and stock performance. Nash’s commentary implies a belief in Apogee’s potential to capitalize on positive clinical outcomes to bolster its financial strategy.

Apogee’s presence in the inflammation and immunology (I&I) space, which is estimated to be worth billions, was highlighted as a reason for the continued endorsement of the stock. Nash concluded by reiterating the Buy rating and the $89 price target, emphasizing the firm’s view of Apogee as a top investment choice within the biotech sector.

In other recent news, Apogee Therapeutics has been the focus of several analyst reviews and strategic developments. The company concluded the first quarter of 2025 with $681.4 million in cash and equivalents, which is expected to fund operations into early 2028. Apogee has entered into a significant manufacturing agreement with Samsung (KS:005930) Biologics for the production of APG777, a promising drug candidate for atopic dermatitis, with the Master Services Agreement effective from February 28, 2025. This agreement includes the production and supply of APG777 for clinical development and potential commercial sale, with a termination date set for February 2035. Analysts from BTIG, Stifel, TD Cowen, and Jefferies have all reiterated Buy ratings on Apogee’s stock, with price targets ranging from $86 to $100. BTIG’s confidence is bolstered by forthcoming data from the Phase 2b trial of APG777, while Stifel emphasizes the drug’s potential efficacy in a broader range of Th2-driven diseases. TD Cowen and Jefferies also express optimism about Apogee’s clinical trials, with Jefferies raising its price target to $86 following promising early-stage trial data. Apogee’s strategic partnership with Samsung and its ongoing clinical trials position the company for potential advancements in its therapeutic offerings.

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