Apellis Pharmaceuticals' (APLS) current valuation does not fully reflect the commercial opportunity for Empaveli in rare kidney diseases such as C3 glomerulopathy (C3G) or immune-complex membranoproliferative glomerulonephritis (IC-MPGN), BofA Securities said in a note Wednesday.

The analysts said in the research note that Empaveli has shown strong early uptake in the US since approval in late July, with about 5% penetration of the patient population and no full denials reported to date.

They noted that management attributes the momentum to a broader label and stronger efficacy versus competitors, while recent European approval via partner Sobi supports a longer-term global opportunity.

BofA sees peak US sales reaching about $508 million in 2033.

The company also expects more modest growth in its geographic atrophy drug Syfovre in 2026, following funding challenges in 2025, but believes a planned prefilled syringe version could help re-accelerate uptake, the analysts said, adding that they project the impact of the prefilled syringe to be felt in 2027.

BofA upgraded Apellis Pharmaceuticals to buy from neutral and set $28 as the price objective.

Shares of Apellis Pharmaceuticals were up more than 3% in recent trading.

Price: 21.11, Change: +0.64, Percent Change: +3.10