Jefferies cuts Verrica stock target to $3, maintains Buy rating

Jefferies' new price target reflects a recalibration of expectations for Verrica Pharmaceuticals (NASDAQ:VRCA)' financial performance and market position. The firm's continued Buy rating indicates a belief in the potential value of the company's stock, albeit recognizing that it may take time for Verrica to demonstrate the necessary launch progress to drive its stock upward. With an overall Financial Health Score labeled as 'WEAK' by InvestingPro, investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of VRCA's financial position and growth prospects among 1,400+ US equities. With an overall Financial Health Score labeled as 'WEAK' by InvestingPro, investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of VRCA's financial position and growth prospects among 1,400+ US equities.

Jefferies' new price target reflects a recalibration of expectations for Verrica Pharmaceuticals' financial performance and market position. The firm's continued Buy rating indicates a belief in the potential value of the company's stock, albeit recognizing that it may take time for Verrica to demonstrate the necessary launch progress to drive its stock upward.

With an overall Financial Health Score labeled as 'WEAK' by InvestingPro, investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of VRCA's financial position and growth prospects among 1,400+ US equities.

The revised price target is based on an updated discounted cash flow (DCF) analysis. Santangelo suggests that Verrica Pharmaceuticals will require several quarters of significant progress in its product launches to garner heightened investor interest. This progress is seen as crucial for the company to achieve a more favorable valuation and stock performance.

Jefferies' new price target reflects a recalibration of expectations for Verrica Pharmaceuticals' financial performance and market position. The firm's continued Buy rating indicates a belief in the potential value of the company's stock, albeit recognizing that it may take time for Verrica to demonstrate the necessary launch progress to drive its stock upward.

In other recent news, Verrica Pharmaceuticals has reported a rise in dispensed units of its lead product, YCANTH, in Q4, with the quarter also seeing significant cost reductions in sales and operational infrastructure.

The company is expanding distribution capabilities in response to growing demand, with a new single applicator configuration expected to be released in Q1 2025. Verrica has also appointed David Zawitz as its new Chief Operating Officer following a thorough selection process by the Board of Directors.

In collaboration with Torii Pharmaceutical (TADAWUL:2070), Verrica has submitted a New Drug Application in Japan for TO-208, a significant step in making the first therapeutic for Molluscum Contagiosum available in the country. TD Cowen has revised its price target for Verrica to $10.00 from $15.00, maintaining a Buy rating, while Needham downgraded the company's stock from Buy to Hold, and RBC Capital maintained an Outperform rating, albeit reducing the stock's price target to $13 from $14.

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