Uy Ear, an analyst from Mizuho Securities, maintained the Buy rating on Evolus (EOLS – Research Report). The associated price target remains the same with $23.00.
Uy Ear has given his Buy rating due to a combination of factors including Evolus’s impressive first quarter performance and the company’s strong sales momentum, which indicate a promising potential for exceeding their 2024 sales guidance. The solid revenue figures, which surpassed expectations for the sixth consecutive quarter, demonstrate the robustness of Jeuveau’s market presence, especially in the context of a broader market where competitors like Botox are showing softer sales. This performance is a sign of confidence in the management’s projections of $255-265 million in sales for the year 2024, and there’s an anticipation of non-GAAP profitability as early as the second quarter, despite official predictions for the fourth quarter.
Furthermore, Evolus’s continued account growth and high consumer reorder rates underscore a strong brand loyalty, which is a critical driver of sustainable sales. The loyalty program’s success, with significant consumer participation and redemption growth, speaks to the effectiveness of the company’s marketing strategies. Additionally, Ear’s outlook remains optimistic despite potential market competition, as Evolus’s guidance already takes into account the entry of new competitors. The reiteration of long-term goals, with a lower-end target of $700 million by 2028, further solidifies the belief in the company’s growth trajectory and underlines the reasons for the Buy rating.
In another report released on May 8, Needham also maintained a Buy rating on the stock with a $22.00 price target.
Based on the recent corporate insider activity of 35 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 EOLS in relation to earlier this year.
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Evolus (EOLS) Company Description:
Evolus, Inc. is a medical aesthetics company, which engages in the provision of medical aesthetic treatments and procedures. It offers products under the brand of Jeuveau. The company was founded by Scott Cannizzaro in November, 2012 and is headquartered in Newport Beach, CA.
