Apellis Pharmaceuticals Inc (NASDAQ: APLS) is down nearly 40% versus its year-to-date high but a Mizuho analyst does not see it as an opportunity to buy per se.

Graig Suvannavejh reiterated his “neutral” stance on the biotech stock in a recent research note. 

While his $52 price target does suggest meaningful upside from here – a negative price-to-earnings multiple of about 11 indicates profitability concerns at least in the near term. 

$APLS is expected to lose 55 cents a share in its fiscal Q1. Its quarterly report is scheduled for next week. 

Plus, Apellis Pharmaceuticals stock does not currently pay a dividend – so that side of its story is not particularly exciting either. 

Profitability concerns associated with Apellis Pharmaceuticals are further validated by its gross margin that stood at a negative 4.11% in 2023 even though its revenue more than tripled in the same period. 

The fact that Dunlop A. Sinclair – a director of $APLS sold about $1.0 million worth of the biotech stock last month does not paint a rosy picture of what the future holds for it either. 

Note that Apellis Pharmaceuticals stock also slipped below its 200-day moving average last week. So, the technicals are indicating bearish sentiment in shares of the $5.0 billion company based out of Waltham, Massachusetts as well. 

On the flip side, however, Handelsbanken Fonder recently revealed to have increased its stake in $APLS. The firm loaded up on 5,400 shares of Apellis to end the fourth quarter with 22,600 in total, as per its filing with the SEC in April.

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