Buy Rating for Arcutis Biotherapeutics: Long-term Growth Potential and Upcoming Catalysts

In a report released yesterday, Vikram Purohit from Morgan Stanley maintained a Buy rating on Arcutis Biotherapeutics (ARQT – Research Report), with a price target of $19.00.

Vikram Purohit has given his Buy rating due to a combination of factors including the upcoming catalysts and long-term growth potential for Arcutis Biotherapeutics. The company is expected to benefit from the upcoming PDUFA decision for its Zoryve foam, which could significantly impact sales if approved for scalp and body psoriasis.
Despite a slight underperformance in the first quarter of 2025 due to lower than expected psoriasis sales, the long-term sales projection for the Zoryve franchise remains strong at over $700 million. Purohit maintains a positive outlook on the stock, supported by the potential of new data from ARQ-255 in alopecia areata and the anticipated approval of Zoryve foam, which could enhance the company’s market position.

In another report released on May 9, TD Cowen also reiterated a Buy rating on the stock with a $20.00 price target.

Based on the recent corporate insider activity of 73 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.