After Mizuho Securities and Stifel Nicolaus gave Evolus Inc (NASDAQ: EOLS) a Buy rating last month, the company received another Buy, this time from H.C. Wainwright. Analyst Douglas Tsao initiated coverage with a Buy rating on Evolus Inc today and set a price target of $37. The company’s shares closed yesterday at $26.
Tsao noted:
“Our $37 price target is based on our DCF valuation. Our DCF model utilizes a terminal growth rate of 3.5%, and WACC-derived discount rate of 12.4% (Beta of 1.3, equity risk premium of 6.7%). We believe a terminal growth rate is warranted considering the long term trends in the BoNT-A market which has grown at an approximate 10% CAGR historically. Key risks include disruption to supply chain, inability to capture market share due to response from larger competitors, and introduction of disruptive technologies (see p.14 for more detail on risks).”
According to TipRanks.com, Tsao is ranked #2794 out of 5163 analysts.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Evolus Inc with a $31 average price target, representing a 19.2% upside. In a report issued on February 1, Cantor Fitzgerald also assigned a Buy rating to the stock with a $35 price target.
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Based on Evolus Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $11.83 million. In comparison, last year the company had a net profit of $4.45 million.
Based on the recent corporate insider activity of 18 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.
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Evolus, Inc. is a medical aesthetics company. The company is engaged in providing physicians and patients with expanded choices in aesthetic procedures and treatments. Evolus was founded in November, 2012 and is headquartered in Irvine, CA.
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