Apogee Therapeutics' (APGE) zumilokibart to treat atopic dermatitis and asthma shows promise, but the company's valuation has reached a near-term peak, RBC Capital Markets said in a Thursday research report.

The drug's long half-life and durable STAT6 biomarker inhibition could enable the company to showcase sustained efficacy, while reductions in FeNO, a biomarker of Type 2 inflammation, in asthma patients support its differentiated long-acting potential, according to the note.

Apogee remains well-positioned and somewhat de-risked, but the inflammatory and immunology diseases segment the company is engaged with is becoming crowded with existing players, raising the bar for future results, analysts wrote.

The brokerage said it downgraded the stock to sector perform from outperform and raised its price target to $83 per share from $70.

Price: 80.93, Change: -0.98, Percent Change: -1.20