On Thursday, H.C. Wainwright maintained a Buy rating and a $27.00 stock price target on Evolus (NASDAQ:EOLS), a medical aesthetics company. The firm's positive stance comes as Evolus's product Jeuveau gains market share, and the anticipation of the Evolysse fillers' launch, which is expected to further boost the company's market presence.
Evolus shares have experienced significant growth, rising 55% in the last three months, a performance that starkly contrasts with the S&P 500's modest 4.3% increase during the same timeframe. This robust growth trajectory for Evolus is attributed to the company's successful market penetration and product performance.
The analyst from H.C. Wainwright cited the macroeconomic environment's stability as a supportive factor for continued consumer demand. This demand is anticipated to be bolstered by the so-called "Ozempic effect," referring to an influx of patients seeking aesthetic treatments after weight loss achieved with the medication Ozempic.
The firm's reiterated Buy rating and price target reflect a belief in Evolus's capacity to not only meet but also surpass market expectations, a trend that has been observed in recent quarters. The company's strong performance and promising product pipeline contribute to the analyst's confidence in Evolus's future prospects.
In other recent news, Evolus Inc . reported a profitable second quarter in 2024, with a 36% increase in revenue, amounting to $66.9 million. The medical aesthetics company revised its full-year 2024 revenue guidance upwards to between $260 million and $270 million.
Mizuho Securities maintained an Outperform rating for Evolus, increasing its price target to $25.00 from $23.00, following the company's Analyst Day. The event highlighted Evolus' strong branding, digital platform, and upcoming product launches, notably the fourth-quarter 2025 introduction of the Evolysse filler.
Mizuho also revised its 2028 revenue estimate for Evolus upward to $706 million from the prior estimate of $661 million, following the introduction of Club Evolus, a unique subscription model. Moreover, the company is preparing for the 2025 launch of its new dermal filler line, Evolysse, as part of its strategic plan to achieve a minimum of $700 million in total net revenues by 2028. These are recent developments for Evolus.
InvestingPro Insights
The recent analysis by H.C. Wainwright aligns with several key insights from InvestingPro. Evolus's strong market performance is reflected in InvestingPro data, which shows a remarkable 96.56% price total return over the past year and a 55.96% return in the last three months. This impressive growth trajectory supports the analyst's bullish stance on the company.
InvestingPro Tips highlight that Evolus is trading near its 52-week high, further underscoring the company's recent market success. Additionally, the company's revenue growth of 40.71% over the last twelve months indicates robust product demand, aligning with the analyst's positive outlook on consumer demand for aesthetic treatments.
While Evolus shows strong growth potential, it's worth noting that InvestingPro Tips also indicate that analysts do not anticipate the company to be profitable this year. This suggests that investors should consider both the growth prospects and current profitability when evaluating the stock.
For readers interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for Evolus, providing a deeper understanding of the company's financial health and market position.
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