Apogee Therapeutics (APGE) shares are close to "appropriately" reflecting their prospects in atopic dermatitis following its recent Part B results of zumilokibart, RBC said in a note Monday.

RBC conducted a survey to gauge dermatologists' reactions to the data and how they might incorporate zumilokibart into their future clinical practice, the report said.

The survey revealed slightly higher-than-expected potential switch expectations but lower-than-expected use in biologics-naives, the note said.

The results improve confidence in RBC's $2.5 billion out-year US atopic dermatitis estimates, but not quite enough to warrant increasing its sales estimates, the report said.

"We are increasing our PoS to better reflect further de-risking both on the clinical and the market side, but we still believe shares are close to appropriately reflecting these prospects," the note said.

RBC raised its price target to $97 from $82 while keeping its sector perform rating.

Price: 84.66, Change: -2.27, Percent Change: -2.61