Analyst Douglas Tsao of H.C. Wainwright reiterated a Buy rating on Arcutis Biotherapeutics, boosting the price target to $22.00.
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Douglas Tsao has given his Buy rating due to a combination of factors that highlight Arcutis Biotherapeutics’ promising growth prospects. The company reported impressive second-quarter revenue for its Zoryve product line, significantly surpassing market expectations. This growth was driven by strong demand across its product variants, particularly the Zoryve foam 0.3% which was recently launched for treating scalp and body plaque psoriasis. The expansion of insurance coverage, including Medicaid, further supports the potential for sustained revenue growth.
Additionally, the anticipated label expansion of Zoryve for treating atopic dermatitis in young children is expected to unlock a significant market opportunity. With a PDUFA date approaching, there is confidence in gaining approval for use in children aged 2-5, which could lead to robust adoption. The company is also exploring new indications and collaborations to enhance the value of Zoryve, alongside advancing its pipeline with new candidates like ARQ-234. These strategic initiatives are expected to drive long-term growth and value for Arcutis Biotherapeutics.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $25.00 price target.