Jefferies lifts Apogee Therapeutics stock target to $86, maintains buy

Published 03/03/2025, 18:04
Jefferies lifts Apogee Therapeutics stock target to $86, maintains buy

On Monday, Jefferies analyst Akash Tewari increased the price target for Apogee (NASDAQ:APOG) Therapeutics Inc (NASDAQ:APGE) shares to $86.00, up from the previous $82.00, while reiterating a Buy rating on the stock. Currently trading at $33.30, the company has received strong analyst support with price targets ranging from $80 to $110. The adjustment follows promising data from the company’s early-stage clinical trials. InvestingPro analysis indicates the company maintains a strong financial health score of 2.56, rated as "GOOD."

Apogee Therapeutics , with a market capitalization of $1.79 billion, is currently conducting a Phase 1b trial in Atopic Dermatitis (AD) for its IL13/OX40L combination therapy versus Dupilumab, with data expected in the second half of 2026. The company has expressed confidence in the potential of their drug, suggesting that a 10-point improvement in trial results could be considered a numerical victory, despite the trial not being designed to show superiority. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 16.39.

The analyst highlighted several positive outcomes from the Single Ascending Dose (SAD) study of APG990 (OX40L), including an approximate 60-day human half-life that management believes could allow for quarterly to semiannual maintenance dosing. Furthermore, the combination with anti-IL13 ’777 showed no preclinical toxicity at three months, and Apogee is optimistic about their ability to co-formulate IL13/OX40 in a 2mL solution.

Tewari’s updated valuation for APG990 now stands at $1.8 billion, a factor contributing to the raised price target. The positive clinical developments and the company’s confidence in their product’s potential have led to this revised financial outlook for Apogee Therapeutics.

In other recent news, Guggenheim has maintained its Buy rating for Apogee Therapeutics Inc., highlighting the company’s strategic approach in the atopic dermatitis market. The reaffirmation comes despite recent clinical trial failures by competitors testing new mechanisms that have not been validated in clinical settings. These trials, involving anti-IL7Ra and BTLA agonist drugs, did not meet primary or secondary endpoints, partly due to high placebo rates. Such rates are common in dermatological trials, complicating efficacy assessments. Guggenheim’s analysts emphasize Apogee’s focus on monoclonal antibodies targeting clinically validated epitopes, which could offer a competitive advantage. The firm also notes that the recent competitor setbacks reduce competition for Apogee. This development is viewed positively as Apogee continues to advance its therapies in a market projected to grow significantly. Guggenheim believes Apogee is well-positioned to benefit from this expansion, given its focus on validated targets and trial design optimization.

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