Vikram Purohit, an analyst from Morgan Stanley, maintained the Buy rating on Arcutis Biotherapeutics (ARQT – Research Report). The associated price target remains the same with $19.00.
Vikram Purohit has given his Buy rating due to a combination of factors that highlight Arcutis Biotherapeutics’ promising outlook. The company’s recent financial performance, particularly the Zoryve sales for the fourth quarter of 2024, exceeded expectations, showing a significant growth compared to prior estimates. This positive sales trend, coupled with management’s optimistic guidance for 2025, suggests a strong potential for continued revenue growth.
Moreover, management has expressed confidence in meeting the consensus expectations for Zoryve revenues in the upcoming year, despite anticipated seasonal impacts on gross-to-net ratios in the first quarter. Additionally, the company is on track to achieve cash flow break-even by 2026, further strengthening its financial position. Upcoming pipeline events, such as the PDUFA date for Zoryve foam and early-stage data for ARQ-255, also contribute to the positive outlook, supporting the Buy rating.
In another report released today, Needham also maintained a Buy rating on the stock with a $20.00 price target.
Based on the recent corporate insider activity of 64 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.