Morgan Stanley analyst Judah Frommer raised the price target on Apellis Pharmaceuticals (NASDAQ: APLS) to $41.00 (from $25.00) while maintaining a Equalweight rating.

The analyst commented, "APLS and BIIB (covered by Terence Flynn) announced today a definitive agreement under which BIIB will acquire all outstanding APLS shares for $41 per share in cash upfront, or ~$5.6B, plus a CVR. The upfront payment, which represents an 86% premium to the 90-day VWAP of APLS shares, reflects anticipated synergies stemming from the deal. Per BIIB, APLS' portfolio is expected to enhance BIIB's short- and long-term revenue growth profile while also accelerating BIIB's commercial readiness for felzartamab, which is currently in Ph3 studies for three kidney indications. BIIB's experience in immunology and rare disease could help maximize the potential of Syfovre and Empaveli. Per BIIB, the transaction is expected to be accretive to BIIB's non-GAAP diluted EPS starting in 2027 and is expected to meaningfully increase non-GAAP EPS CAGR through the end of the decade, reflecting anticipated mid-to-high teens revenue growth for Empaveli + Syfovre through 2028"