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On Tuesday, H.C. Wainwright initiated coverage on Tarsus Pharmaceuticals (market cap: $1.81 billion), a company trading on NASDAQ under the ticker TARS, with a Buy rating and a price target of $72. Currently trading at $42.98, the stock has received strong analyst support, with targets ranging from $51 to $93. The firm’s analyst highlighted the company’s significant progress with its product XDEMVY, which is the first FDA-approved therapy for treating Demodex blepharitis (DB), an eyelid inflammation affecting over 25 million Americans. According to InvestingPro data, the company maintains a robust financial health score of "GOOD."
Tarsus Pharmaceuticals has seen substantial commercial success with XDEMVY, generating over a quarter billion dollars in net product sales since its market introduction. The company’s impressive 449% revenue growth in the last twelve months and healthy gross profit margin of 69% reflect this success. The firm’s analyst underscored Tarsus’s position as the first and only provider in this market segment, suggesting a continued growth trajectory supported by proactive company initiatives. The company maintains a strong liquidity position with a current ratio of 5.57, indicating robust operational flexibility.
The analyst also noted the ease of diagnosing DB through routine eye exams, which can identify the presence of collarettes on the eyelashes. With a robust efficacy profile, XDEMVY has been successful in treating the condition, thereby boosting prescriber confidence.
Beyond the current commercial success of XDEMVY, H.C. Wainwright’s analyst pointed to Tarsus Pharmaceuticals’ broader pipeline as a source of potential upside. The analyst specifically mentioned TP-04, aimed at treating ocular rosacea, and TP-05, for on-demand oral prophylaxis of Lyme disease, as promising clinical pipeline opportunities that could benefit from the momentum of XDEMVY.
In conclusion, the coverage by H.C. Wainwright emphasizes the potential for continued growth of Tarsus Pharmaceuticals, supported by the commercial and clinical progress of its product offerings. The firm’s confidence in Tarsus is reflected in the Buy rating and the $72 price target set for the company’s stock. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of this and 1,400+ other US stocks.
In other recent news, Tarsus Pharmaceuticals reported strong financial results for the first quarter of 2025, with net product sales reaching $78.3 million. This represents a 217% year-over-year increase, largely driven by the success of its flagship product, Xtendi. The company ended the quarter with $407.9 million in cash and raised an additional $134.8 million through equity financing. Despite these robust financials, Tarsus Pharmaceuticals’ stock experienced a slight decline following the earnings announcement. The company is also exploring global expansion opportunities for Xtendi, with plans to meet regulatory authorities in various regions. Analysts from firms such as Goldman Sachs have shown interest in the company’s growing market presence and potential for further expansion. Tarsus has also announced plans to invest significantly in direct-to-consumer advertising and the development of new products in its pipeline. The ongoing success of Xtendi and the company’s strategic initiatives position Tarsus as a notable entity in the eye care industry.
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