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Investing.com - Canaccord Genuity initiated coverage on Botanix Pharmaceuticals Ltd (ASX:BOT) with a Buy rating and a price target of AUD0.27.
The research firm’s coverage comes six months into the launch of Sofdra, Botanix’s topical anticholinergic gel developed for approximately 5 million U.S. patients with primary axillary hyperhidrosis (excessive underarm sweating).
Canaccord Genuity attributes the stock’s recent volatility to market adjustment regarding the realities of a dermatology drug launch, suggesting the recent sell-off presents an investment opportunity with more reasonable consensus revenue expectations.
The price target represents 7.7x FY26 estimated EV/Revenue and approximately 3.6x on a forward FY27 basis, positioning it at the top end of global and ASX-listed comparables and in line with median dermatology deal values.
Canaccord Genuity forecasts Botanix will reach cashflow positivity in the second quarter of FY27, marking a significant inflection point for the company as Sofdra sales continue to grow.
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