In a report released today, Susan Anderson from Canaccord Genuity maintained a Hold rating on Beauty Health (SKIN – Research Report), with a price target of $1.50.
Susan Anderson’s rating is based on a combination of factors affecting Beauty Health’s current market position. The company has experienced a decline in sales, particularly in new machine placements, which have been significantly impacted by challenging macroeconomic conditions and a high-interest rate environment. Despite these challenges, the consumables segment has shown resilience, with sales growth indicating strong consumer demand for the company’s products.
Management’s strategic shift in China from a direct business model to a distributor model is expected to pressure topline revenue in the short term but could potentially improve profitability and growth in the long run. Additionally, while the company has implemented cost management strategies and introduced lower-cost machine options to stimulate sales, these efforts have not fully offset the adverse macroeconomic impacts. Consequently, Anderson maintains a Hold rating, reflecting cautious optimism until there is more stability in system sales and overall market conditions improve.
Anderson covers the Consumer Cyclical sector, focusing on stocks such as The Estée Lauder Companies, Inter Parfums, and e.l.f. Beauty. According to TipRanks, Anderson has an average return of 16.9% and a 44.62% success rate on recommended stocks.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $1.50 price target.
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