Raymond James Upgraded This Biopharma Stock And Sees 44% Upside

Raymond James has upgraded NGM Biopharmaceuticals Inc NGM to Strong Buy from Outperform with a price target of $39, up from $27, almost 44% upside.
Analyst Steven Seedhouse notes the validation of NGM's C3 antibody mechanism and the large potential opportunity for NGM621 in geographic atrophy (GA).
Seedhouse writes that Phase 3 data for Apellis Pharmaceuticals Inc's APLS pegcetacoplan in GA provide strong evidence that complement inhibition is an active mechanism in GA.
Related Content: Apellis Unveils Mixed Results For Eye Disorder Drug, But Still Hopes To Pass FDA Finish Line.
The update makes the large GA market accessible to the few mid-stage clinical complement players with plenty of room for differentiation/optimization, he contends.
Near term, the first-look readout for cancer cachexia agent NGM120 at ESMO next week is a free call option, Seedhouse adds.
Price Action: NGM stock is up 13% at $26.39 during the market session on the last check Monday.