Beauty Health price target raised to $3 from $2 at Piper Sandler

Piper Sandler raised the firm’s price target on Beauty Health to $3 from $2 and keeps an Underweight rating on the shares. Both the device and operational issues Beauty Health is facing don’t necessarily seem to be in the rear-view and might even be more extensive than originally thought following the Q4 earnings call, the firm says. Results and guidance did come in better than expected, but it was the commentary on the call regarding additional Syndeo problems, unclear descriptions of several operational challenges that are a work in progress, and pressured free cash flow that make Piper believe the after-hours share performance is significantly overdone.