Wedbush analyst Laura Chico initiated coverage of Apellis with an Underperform rating and $23 price target. In a research note to investors, Chico says that while shares have outpaced the sector this year, ahead of Phase 3 APL-2 data in paroxysmal nocturnal hemoglobinuria, but sees "meaningful" challenges ahead for Apellis. The analyst says that while she assumes the Phase 3 PEGASUS study meets its primary endpoint, switching to APL-2 isn't guaranteed and with Ultomiris already converting greater than 50% of the U.S. PNH market, it is unclear how this may impact APL-2 utilization.