Evolus (EOLS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Douglas Tsao from H.C. Wainwright reiterated a Buy rating on the stock and has a $27.00 price target.
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Douglas Tsao gave his rating based on several factors that contribute to the promising outlook for Evolus. The recent FDA approval of Evolus’s new injectable products, Evolysse Form and Smooth, is a significant milestone for the company, allowing it to enter the substantial U.S. hyaluronic acid dermal filler market. This approval is expected to expand Evolus’s addressable market by 78% to approximately $6 billion, enhancing its product portfolio with complementary offerings.
Additionally, the approval was supported by positive data from the U.S. NLF pivotal study, which showed superior results compared to a leading competitor’s product after six months. The unique “cold” cross-linking technology used in Evolus’s fillers is anticipated to offer a more natural gel, appealing to aesthetic injectors. Furthermore, the expected contribution of the fillers to the company’s revenue and the potential for future product launches strengthen the growth prospects, justifying the Buy rating. Despite potential risks such as supply chain disruptions and competitive pressures, the valuation of Evolus at a price target of $27 reflects a favorable risk-adjusted revenue forecast.