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Investing.com -- Raymond James downgraded Apellis Pharmaceuticals (NASDAQ:APLS) to Outperform from Strong Buy following a first-quarter sales miss and rising concerns over volatility in the company’s revenue outlook. 

The firm also lowered its price target on Apellis shares to $52 from $75, citing "added uncertainty associated with quarterly sales volatility."

Apellis reported first-quarter Syfovre sales of $130.2 million, missing consensus expectations of $157.5 million. 

According to Raymond (NSE:RYMD) James, the shortfall was attributed to “inventory drawdown and a funding shortage at co-pay assistance programs.” 

The firm also noted an increase in sample vials, which now account for more than 10% of total vials.

Despite these challenges, Raymond James acknowledged positive trends. “The 4% q/q growth in Syfovre injections, and APLS’ estimated ~60% market share in GA and 55% of new patient starts as of late April suggests sales could potentially bounce back later in 2025.” 

Increased web traffic to Syfovre.com, driven by a new direct-to-consumer campaign, could also boost patient uptake, according to Raymond James.

The firm still sees long-term potential in Apellis’s pipeline, particularly with Empaveli. “We still think Apellis can deliver two blockbuster products with Empaveli and Syfovre,” analysts wrote. 

However, the firm expressed concern about “incrementally increased risk associated with the long-term growth and stability of revenues.” 

As a result, Raymond James increased its discount rate back to 12%, reversing a previous decrease tied to improved stability.

“We are moving the discount rate back up to 12%,” the analysts concluded, “given our perception of incrementally increased risk.”

This content was originally published on http://Investing.com