Raymond James cuts APLS stock rating, lowers price target to $52

Published 09/05/2025, 11:08
Raymond James cuts APLS stock rating, lowers price target to $52

On Friday, Raymond (NSE:RYMD) James downgraded Apellis Pharmaceuticals (NASDAQ:APLS) stock from ’Strong Buy’ to ’Outperform’, adjusting the price target to $52 from the previous $75. The downgrade followed Apellis’ first-quarter earnings for 2025, which revealed net sales of Syfovre at $130.2 million, falling short of the expected $157.5 million. According to InvestingPro data, the stock has fallen over 40% in the past six months and is currently trading near its 52-week low of $16.65. The company attributed the lower sales to a reduction in inventory and a lack of funding at co-pay assistance programs. Additionally, the increase in sample vials to more than 10% of total vials distributed was noted.

Despite the quarterly sales volatility, Apellis reported a 4% quarter-over-quarter growth in Syfovre injections. The company, which generated $775.84 million in revenue over the last twelve months with an impressive growth rate of 48%, maintains an estimated market share of approximately 60% in geographic atrophy (GA) and accounts for 55% of new patient starts as of late April. This performance, coupled with a direct-to-consumer campaign that has boosted web traffic to Syfovre.com by 30% compared to the entire year of 2024, suggests a potential sales recovery later in the year.

Looking ahead, Apellis has a Prescription Drug User Fee Act (PDUFA) target date of July 28 for the approval of Empaveli in the treatment of C3 Glomerulopathy (C3G) and IgA-Mediated Membranoproliferative Glomerulonephritis (IC-MPGN). The company’s field teams have been active since April in anticipation of this potential product launch.

Furthermore, Apellis is planning to initiate pivotal studies in the second half of 2025 for delayed graft function (DGF) and focal segmental glomerulosclerosis (FSGS), two significant health conditions. Despite the downgrade, Raymond James remains confident in Apellis’ potential to deliver blockbuster products with both Empaveli and Syfovre and continues to believe in the company’s capability to market effective new drugs. InvestingPro analysis suggests the stock is currently undervalued, with a strong financial health score and multiple growth catalysts ahead. Subscribers can access the comprehensive Pro Research Report for detailed insights into Apellis’s valuation and growth prospects.

In other recent news, Apellis Pharmaceuticals reported its Q1 2025 financial results, revealing earnings per share (EPS) of -$0.74, which fell short of the forecasted -$0.34. The company’s revenue also missed expectations, coming in at $166.8 million compared to the anticipated $197.77 million. Despite these challenges, Apellis continues to hold a strong 60% market share with its product Cyfovri, although it experienced a decline in net product revenue this quarter. Meanwhile, Empaveli is awaiting potential FDA approval for new indications by July 2025, which could positively impact future revenues. Analyst firms have not provided new ratings, but investors are closely watching the company’s efforts to stabilize operating expenses and expand its market presence outside the U.S. Apellis has also stated that it is maintaining its cash and cash equivalents at $358 million, which it believes will support its operations towards profitability. The company is preparing for the anticipated launch of Empaveli in Q3 2025, aiming to reinforce its position in the market.

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