Susan Anderson, an analyst from Canaccord Genuity, maintained the Hold rating on Beauty Health. The associated price target is $1.50.
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Susan Anderson has given her Hold rating due to a combination of factors affecting Beauty Health’s performance. Despite the company exceeding sales expectations in the second quarter, with revenues of $78.2 million surpassing both internal and Street estimates, the macroeconomic environment remains challenging. The company has shown resilience by managing inventory effectively and investing in innovation, which has helped improve gross margins and drive demand.
However, Susan remains cautious due to the ongoing pressure on new machine placements, which are likely to be impacted by high interest rates and uncertain economic conditions. While the consumables business has shown stability, aided by strong demand for noninvasive aesthetic treatments, the transition of the China market and the end of the Sephora partnership have exerted some pressure. Overall, while there are positive signs, the current economic climate suggests a cautious approach, justifying the Hold rating.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $2.00 price target.