Applied Therapeutics Inc's stock has dropped significantly by 45.92%, crossing below the 5-day SMA, amid a broader market decline with the Nasdaq-100 down 1.55% and the S&P 500 down 0.89%.
The decline is primarily due to the announcement of a definitive agreement for Cycle Group to acquire Applied Therapeutics at $0.088 per share, which has raised concerns among investors about the company's future. The acquisition includes contingent value rights that could provide additional cash payments upon FDA approvals, reflecting Cycle's confidence in Applied's lead candidate, govorestat. Furthermore, Cycle has committed to providing up to $8.5 million in unsecured loans to support Applied's operations until the acquisition closes, which is crucial for the company's continuity during this transition.
This acquisition marks a significant strategic shift for Applied Therapeutics, as it navigates through operational challenges while aiming to expedite the development of govorestat. The market's reaction indicates uncertainty about the company's future prospects, despite the potential upside from the acquisition.
Wall Street analysts forecast APLT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for APLT is 0.25 USD with a low forecast of 0.25 USD and a high forecast of 0.25 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
Wall Street analysts forecast APLT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for APLT is 0.25 USD with a low forecast of 0.25 USD and a high forecast of 0.25 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
4 Hold
0 Sell
Hold
Current: 0.093
Low
0.25
Averages
0.25
High
0.25
Current: 0.093
Low
0.25
Averages
0.25
High
0.25
Leerink
Outperform -> Market Perform
downgrade
$2 -> $1
2025-12-03
Reason
Leerink
Price Target
$2 -> $1
AI Analysis
2025-12-03
downgrade
Outperform -> Market Perform
Reason
Leerink downgraded Applied Therapeutics to Market Perform from Outperform with a price target of $1, down from $2. With growing concerns over Applied Therapeutics' balance sheet and the likelihood that the company will need to run two additional Phase 3 studies to get govorestat across the goal line, the firm is moving to the sidelines and cutting the stock's rating to Marker Perform.
Leerink
Joseph Schwartz
Outperform
to
Market Perform
downgrade
$1
2025-12-03
Reason
Leerink
Joseph Schwartz
Price Target
$1
2025-12-03
downgrade
Outperform
to
Market Perform
Reason
Leerink analyst Joseph Schwartz downgraded Applied Therapeutics to Market Perform from Outperform with a $1 price target.
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About APLT
Applied Therapeutics, Inc. is a clinical-stage biopharmaceutical company engaged in the development of drug candidates against validated molecular targets in rare diseases. The Company’s lead drug candidate, govorestat, is a central nervous system penetrant Aldose Reductase Inhibitor (ARI) for the treatment of CNS rare metabolic diseases, including classic galactosemia, sorbitol dehydrogenase (SORD) deficiency and phosphomannomutase 2 (PMM2)-congenital disorder glycosylation (CDG). The Company is also developing AT-001, an investigational, ARI developed as an oral therapy for the treatment of diabetic cardiomyopathy (DbCM). It has completed a Phase I/II clinical trial evaluating AT-001 in approximately 120 patients with type II diabetes. The Company’s pipeline also includes AT-003, an ARI designed to cross through the back of the eye when dosed orally, and has demonstrated strong retinal penetrance, for the treatment of diabetic retinopathy (DR).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
