Douglas Tsao, an analyst from H.C. Wainwright, reiterated the Buy rating on Evolus. The associated price target remains the same with $20.00.
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Douglas Tsao has given his Buy rating due to a combination of factors that highlight Evolus’s potential despite current market challenges. The analyst notes that while the macroeconomic environment is affecting Jeuveau’s sales in the short term, its superior effectiveness positions it well to gain market share once demand rebounds. Evolus’s recent adjustment of its 2025 revenue guidance reflects a cautious approach, yet the company has observed some improvement in performance, particularly among affluent consumers who drive the aesthetic market.
Furthermore, Tsao points out that Evolus’s shares are currently undervalued, trading at less than 2x EV/’25 sales, suggesting that the market has already priced in the challenging conditions. The introduction of Evolysse fillers is seen as an additional growth driver alongside Jeuveau. Despite investor concerns about the company’s long-term revenue targets, Tsao anticipates more clarity on this front in the coming years. The valuation is supported by a 5x multiple of the 2035 discounted risk-adjusted revenue estimate, with Jeuveau assigned a 100% probability of success and Evolysse at 60%.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EOLS in relation to earlier this year.