In a report released today, Douglas Tsao from H.C. Wainwright reiterated a Buy rating on Arcutis Biotherapeutics (ARQT – Research Report), with a price target of $19.00.
Douglas Tsao has given his Buy rating due to a combination of factors that highlight the promising growth trajectory of Arcutis Biotherapeutics. The company’s key product, Zoryve, has demonstrated impressive revenue growth, with a significant year-over-year increase in the first quarter of 2025. This growth is further supported by a notable rise in prescription volumes, particularly in the second quarter, indicating strong market demand.
Additionally, the anticipated approval of Zoryve’s foam formulation for scalp and body psoriasis is expected to sustain this growth momentum. The expansion of insurance coverage, especially within Medicaid and Medicare, is set to enhance commercial opportunities for Arcutis. Furthermore, the market’s shift away from topical corticosteroids towards safer alternatives like Zoryve positions the company favorably within the dermatology sector. The upcoming potential approval for pediatric use of Zoryve cream could further bolster its market presence, making Arcutis a compelling investment opportunity.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $19.00 price target.
Based on the recent corporate insider activity of 72 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 ARQT in relation to earlier this year.