Financial services firm Baird has adjusted its outlook on Apellis Pharmaceuticals (NASDAQ: NASDAQ:APLS), reducing the price target to $86.00 from the previous $100.00.
Despite the lower price target, Baird, on Friday, maintained an Outperform rating on the stock.
The revision comes ahead of Apellis Pharmaceuticals' second-quarter earnings report, scheduled for release on Thursday, August 1, 2024. Baird's adjustment reflects a more conservative stance on the company's quarterly growth expectations.
The firm's analyst cited "plenty of noise" surrounding the upcoming earnings, particularly concerning the Izervay J-code impact and the general market interest in geographic atrophy (GA).
Baird has moderated its growth forecast for Apellis, reducing the second-quarter sales estimate of Syfovre, Apellis' leading product, to $160 million from the earlier prediction of $180 million. The new estimate aligns closely with the consensus figure of $157 million.
The firm also anticipates that Apellis' second-quarter commentary will draw attention, especially with regard to projections for the third quarter of 2024. Additionally, the performance of Astellas, a competitor in the market, will be observed with interest as it also reports on the same day.
InvestingPro Insights
As Apellis Pharmaceuticals (NASDAQ: APLS) approaches its second-quarter earnings release, InvestingPro data offers a deeper dive into the company's financial health and market performance. With a market capitalization of $4.72 billion, Apellis is navigating through a challenging phase. The company's Price to Earnings (P/E) ratio stands at -11.23, reflecting market expectations of future earnings growth despite current unprofitability. Moreover, the Price to Book (P/B) ratio as of the last twelve months as of Q1 2024 is at a high 17.69, suggesting that the stock might be valued on the higher side compared to its book value.
Revenue growth remains a bright spot with a remarkable increase of 394.93% over the last twelve months as of Q1 2024. This aligns with one of the InvestingPro Tips highlighting analysts' anticipation of sales growth in the current year. However, another tip points out that the company is not expected to be profitable this year, which is consistent with the negative P/E ratio.
Investors considering Apellis should note that the company's liquid assets exceed its short-term obligations, providing some financial stability in the near term. This is an important consideration given that the company does not pay dividends, which is another tip from InvestingPro. For those looking to delve deeper into Apellis Pharmaceuticals' financials and future outlook, InvestingPro offers several additional tips, which can be accessed with a subscription. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
As the market anticipates the upcoming earnings report, these insights can help inform investment decisions and set expectations for Apellis' performance in the competitive pharmaceutical landscape.
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