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On Friday, Stifel analysts revised their price target for Apellis Pharmaceuticals (NASDAQ:APLS) stock, reducing it to $60 from the previous $75, while continuing to support a Buy rating for the company. The adjustment follows Apellis’s fourth-quarter earnings, which aligned with preliminary results, showcasing revenues of $211.1 million, surpassing the consensus estimate of $198.8 million. The company’s product, Syfovre, was highlighted for its robust performance. According to InvestingPro data, Apellis has demonstrated impressive revenue growth of 162% over the last twelve months, with total revenue reaching $715 million. The stock currently trades near its 52-week low of $24.34, having declined about 59% over the past year.
Apellis Pharmaceuticals has outlined its strategy for the future, focusing on expanding the reach and communication of its long-term and real-world data. This data demonstrates favorable efficacy, particularly important as the company faces a stable competitive landscape with the new Izervay label. Analysts see a significant opportunity for growth in the C3 Glomerulopathy (C3G) and Immune Complex-Mediated Membranoproliferative Glomerulonephritis (IC-MPGN) markets, backed by the comprehensive VALIANT Phase 3 data. This data is anticipated to underpin a submitted supplemental New Drug Application (sNDA) for an accelerated review process. InvestingPro analysis shows strong analyst confidence, with three analysts recently revising their earnings estimates upward and projecting continued sales growth.
The VALIANT Phase 3 data is expected to diversify Apellis’s portfolio beyond Syfovre towards a broader C3 portfolio by the end of the year. This shift is seen as a pathway to multiple growth avenues for the company. Although Apellis has not issued formal guidance, the company believes it is on a trajectory towards profitability, underpinned by a cash reserve of $411 million and a restructured debt profile.
The updated price target of $60 reflects an adjusted outlook for Apellis Pharmaceuticals, taking into account the company’s current financial position and market opportunities. Despite the price target reduction, the maintained Buy rating suggests continued confidence in the company’s potential for growth and value creation.
In other recent news, Apellis Pharmaceuticals reported fourth-quarter 2024 results that exceeded analyst expectations, posting revenue of $212.5 million, surpassing the consensus estimate of $192.9 million. This marks a 45% increase from the same quarter last year. The company’s adjusted earnings per share were -$0.29, better than the expected -$0.37. SYFOVRE, a treatment for geographic atrophy, generated $167.8 million in U.S. net product revenue, while EMPAVELI contributed $23.4 million. Despite the revenue beat, shares fell, possibly due to anticipated softer guidance for Syfovre.
TD Cowen reiterated a Buy rating on Apellis, maintaining a price target of $60. Analyst Phil Nadeau noted that Apellis’s year-end cash balance of $411 million should be sufficient to fund operations until profitability. The company plans to initiate two Phase III trials for EMPAVELI in 2025, targeting focal segmental glomerulosclerosis and delayed graft function. Additionally, Apellis submitted a supplemental New Drug Application for pegcetacoplan, aiming for a commercial launch in the second half of 2025. Mizhou Securities analyst Graig Suvannavejh highlighted potential softness in Syfovre sales due to seasonality and increased sampling.
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