In a report released today, Douglas Tsao from H.C. Wainwright reiterated a Buy rating on Revance Therapeutics (RVNC – Research Report), with a price target of $15.00.
Douglas Tsao has given his Buy rating due to a combination of factors that take into account the current performance and future potential of Revance Therapeutics. Despite a disappointing fourth quarter for Daxxify with sales not meeting expectations and concerns about the impact of a pricing strategy shift, Tsao sees potential in the company’s RHA filler line. This product has maintained strong sales and could signal a roadmap for growth, especially considering the 4,000 additional ordering accounts compared to Daxxify. Additionally, management’s guidance for sales in 2024, while below consensus, aligns with Tsao’s model and the company’s cost management strategies appear to put it on a path to reach positive adjusted EBITDA by 2025.
The valuation underpinning the Buy rating and $15 price target involves a sum-of-the-parts NPV valuation that takes into account the different indications targeted by Daxxify and the RHA line. Tsao’s DCF model includes adjustments for the probability of success for each indication, with considerable weight given to already approved uses. Risks have been factored into the analysis, such as regulatory hurdles, market adoption, competitive pressures, and execution of clinical trials for various therapeutic indications. Overall, the potential for growth in the RHA filler business and the manageable risks seem to justify the optimistic outlook on Revance Therapeutics.
Tsao covers the Healthcare sector, focusing on stocks such as Coherus Biosciences, Marinus, and Argenx Se. According to TipRanks, Tsao has an average return of 8.8% and a 43.51% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $25.00 price target.
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Revance Therapeutics (RVNC) Company Description:
Revance Therapeutics, Inc. is a clinical stage biotechnology company. It engages in the development, manufacturing, and commercialization of novel botulinum toxin products for multiple aesthetic and therapeutic applications. The firm focuses on production of daxibotulinumtoxinA, a botulinum toxin, for aesthetic and therapeutic indications, including facial wrinkles and muscle movement disorders. The company was founded by Jacob M. Waugh and L. Daniel Browne on August 10, 1999 and is headquartered in Newark, CA.
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