Tuesday - RBC Capital Markets has initiated coverage on shares of Applied Therapeutics (NASDAQ:APLT), bestowing an Outperform rating and setting a price target of $12.00. The firm's confidence is rooted in the potential success of Applied Therapeutics' lead drug, govorestat, which targets orphan diseases such as galactosemia and SORD deficiency.
The analyst's perspective highlights the company's resilience in overcoming development and regulatory hurdles. With the lead drug govorestat advancing through the pipeline, the firm anticipates its successful positioning in the market for these rare diseases. Despite the recent appreciation in Applied Therapeutics' share price due to the renewed interest in its development story, RBC Capital sees further growth potential.
The firm's valuation is supported by the substantial revenue opportunity estimated to exceed $650 million at peak sales for govorestat. This projection is based on the comprehensive data backing the drug's efficacy and safety. RBC Capital expects that the stock will continue to gain value, driven by positive momentum and an advantageous position as it approaches key regulatory decisions.
Investors are encouraged by RBC Capital's outlook, which suggests that Applied Therapeutics' shares have not yet reached their full potential. The anticipation of upcoming regulatory milestones could serve as catalysts for further appreciation in the stock's value.
In conclusion, RBC Capital's initiation of Applied Therapeutics with an Outperform rating and a $12 price target reflects a positive view of the company's prospects. The firm's analysis indicates a promising future for Applied Therapeutics, particularly with its lead drug govorestat, as it navigates the final stages before potential market entry for the treatment of rare metabolic disorders.
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