Arcutis Biotherapeutics: Strengthening Zoryve Franchise, Approaching Profitability, and Multiple 2026+ Pipeline Catalysts Support Buy Rating

Analyst Serge Belanger from Needham maintained a Buy rating on Arcutis Biotherapeutics and keeping the price target at $30.00.

Serge Belanger has given his Buy rating due to a combination of factors tied to Arcutis Biotherapeutics’ growth outlook and improving fundamentals. He points to management’s reaffirmed 2026 revenue target for the Zoryve franchise of roughly $455–470 million, supported by an approximately 20% planned expansion of the dermatology sales force to drive broader reach and higher prescribing activity. He also notes that the company is approaching a key financial inflection, with expectations for sustained positive cash flow beginning in 2026 following its first profitable quarter in 3Q25.

Serge further underscores that upcoming regulatory and clinical milestones add to the attractiveness of the story. The expected FDA decision on Zoryve cream 0.3% for children aged 2–5 with plaque psoriasis by late June 2026 could meaningfully expand the addressable market. In addition, results anticipated from the INTEGUMENT-INFANT atopic dermatitis trial in early 2026, along with exploratory data in vitiligo and hidradenitis suppurativa through 2026–2027, offer multiple potential catalysts that could enhance the Zoryve franchise and support continued prescription growth. Taken together, this combination of solid revenue guidance, commercial investment, improving profitability, and pipeline-driven upside underpins his Buy recommendation on ARQT.

In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $37.00 price target.

Based on the recent corporate insider activity of 95 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ARQT in relation to earlier this year.