Summary

  • Wells Fargo upgraded Apellis Pharmaceuticals (NASDAQ: APLS) to an ‘overweight’ rating and increased its price target on the stock to US$64.
  • APLS has a mean recommendation rating of 1.9 on a scale of one to five and a consensus mean price target of US$67.64.
  • Apellis’ total revenue was US$89.65 million in Q2 2023, as against US$15.65 million in Q2 2022 quarter.

Apellis Pharmaceuticals Inc. (NASDAQ: APLS) received a rating upgrade from Wells Fargo as the broker is positive on the company’s eye disorder drug. The broker upgraded Apellis to ‘overweight’, while raising its price target on the stock from US$34 to US$64.

Apellis Pharmaceuticals has a mean recommendation rating of 1.9 on a scale of one to five, as per EODHD/Others data. APLS’ current rating is achieved by combining the coverage of 15 analysts. Among these analysts, five believe APLS to be a ‘strong buy’, six believe it is a ‘buy’ and four recommend a ‘hold’ rating.

Meanwhile, the consensus mean price target on the stock is US$67.64, an upside potential of over 50% on the stock’s closing price on Friday. Apellis closed at US$44.44 on Friday, September 15, 2023.

APLS Price Chart; Source: EODHD/Others

As at the close of trade on Friday, the stock price had risen by 2.6% intraday and by 44.99% over a one-month period. The stock hit its 52-week high of US$94.75 on June 14, 2023, and it has corrected by 53.1% since then.

Wells Fargo believes Syfovre “on track to beat consensus estimates”

Wells Fargo stated that Apellis’ eye disorder drug Syfovre could potentially beat consensus estimates. Syfovre was initially associated with eye inflammation as doctors had reported cases of the same after treatment. These doctor reports were cited by analysts in July, leading to APLS stock price falling by 21.2%.

In the following month, analysts flagged the potential reason behind the inflammation and added that APLS had found irregularities in the 19-gauge filter needles that are useful in withdrawing the drug from vials.

Broker Wells Fargo took this needle theory into account and stated that while the theory has not been confirmed, the commentary on the 19-gauge needle is highly encouraging.

Meanwhile, the latest upgrade from Wells Fargo resulted in APLS shares rising by 4.3% to US$45.17 on September 15, 2023.

However, on a YTD basis APLS share price was down around 14% based on Friday’s closing price.  

A look at Apellis’ financials

For the June 2023 quarter, Apellis reported a total revenue of US$89.65 million, as against US$15.65 million in the June 2022 quarter. The operating revenue for the June 2023 quarter was US$94.97 million.

The operating loss for the period was US$103.68 million and the net loss was US$122.04 million. This was lower than June 2022 quarter’s net loss of US$155.98 million. At the same time, the EBITDA was negative US$120.45 million in the June 2023 quarter. Apellis also reported cash and cash equivalents of US$616.3 million as on June 30, 2023.

Other brokers maintaining a ‘moderate buy’ rating on APLS include Needham & Co, H.C. Wainwright and TD Cowen. Alternatively, Raymond James and Oppenheimer maintained a ‘strong buy’ rating and an ‘outperform’ rating on APLS, respectively. Wedblush Securities believes APLS is a ‘hold’.