Susan Anderson, an analyst from Canaccord Genuity, maintained the Hold rating on Beauty Health. The associated price target remains the same with $1.50.
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Susan Anderson’s rating is based on a combination of factors influencing Beauty Health’s current market position. The company reported a decline in third-quarter sales by 10.3% year-over-year, although it managed to surpass both internal and market expectations. The new CEO, Pedro Malha, has introduced strategic priorities aimed at expanding the device footprint and enhancing repeat treatments, which are positive steps for future growth.
However, the company faces challenges that justify a Hold rating. The transition to a distributor model in China has impacted consumable sales, and the higher interest rate environment, coupled with uncertain macroeconomic conditions, may continue to pressure new machine placements. While the company has shown some operational improvements, these external factors contribute to a cautious outlook, leading to the reiteration of a Hold rating with a price target of $1.50.
SKIN’s price has also changed moderately for the past six months – from $1.050 to $1.290, which is a 22.86% increase.