Matthew Caufield, an analyst from H.C. Wainwright, reiterated the Buy rating on Tarsus Pharmaceuticals. The associated price target was raised to $88.00.
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Matthew Caufield has given his Buy rating due to a combination of factors surrounding the promising trajectory of XDEMVY in treating Demodex blepharitis. The drug has shown impressive quarterly growth in sales, ranging from 18% to 31%, which is expected to continue due to effective commercial strategies. The expansion of the prescriber base, with over 20,000 eye care professionals now prescribing XDEMVY, has led to increased revenue estimates and a higher market penetration forecast, now reaching 25% by 2036.
Furthermore, XDEMVY’s status as the only FDA-approved treatment for Demodex blepharitis, combined with its successful direct-to-consumer advertising campaign and extensive insurance coverage, supports its commercial growth. The drug’s ability to be prescribed following routine eye exams further facilitates its adoption. These factors, along with the active engagement of consumers through digital platforms, underpin Caufield’s confidence in the stock, leading to an increased price target of $88 per share.
In another report released on October 9, Bank of America Securities also maintained a Buy rating on the stock with a $85.00 price target.