Applied Therapeutics price target lowered to $5 from $14 at Baird

Baird analyst Brian Skorney lowered the firm’s price target on Applied Therapeutics (APLT) to $5 from $14 and keeps an Outperform rating on the shares after the FDA issued a complete response letter for govorestat for the treatment of galactosemia. The “credibility damage will be tough to bounce back from” there is a lack of substantial detail around how the review went south, the analyst tells investors in a research note. The firm now expects the review in sorbitol dehydrogenase deficiency to be “greeted with much greater skepticism by investors.” However, it remains an attractive a commercial opportunity as galactosemia and the stock could rally back in the double-digits after an approval next year, contends Baird.