Analyst Vikram Purohit of Morgan Stanley maintained a Buy rating on Arcutis Biotherapeutics (ARQT – Research Report), retaining the price target of $19.00.
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Vikram Purohit’s rating is based on several key considerations regarding Arcutis Biotherapeutics. The company’s flagship product, Zoryve, is expected to experience a stronger impact from cyclicality and seasonality than previously anticipated, which could influence its commercial performance. Additionally, the upcoming earnings report and management commentary are anticipated to provide insights into the company’s strategic direction, particularly in light of recent changes in the CFO position and the implications for capital allocation and financial strategy.
Furthermore, the partnership with Kowa is expected to enhance the company’s reach among primary care physicians, potentially boosting sales. Despite some uncertainties, such as the ongoing Padagis IP case and the recent underperformance of a comparable product, Opzelura, the potential for Zoryve to capture a larger market share remains a positive factor. These elements collectively contribute to the optimistic outlook and justify the Buy rating for Arcutis Biotherapeutics.
According to TipRanks, Purohit is an analyst with an average return of -4.1% and a 37.67% success rate. Purohit covers the Healthcare sector, focusing on stocks such as Genmab, Ascendis Pharma, and Axsome Therapeutics.
In another report released on April 23, TD Cowen also maintained a Buy rating on the stock with a $20.00 price target.