Gold prices edge higher on raised Fed rate cut hopes
On Wednesday, Mizuho (NYSE:MFG) Securities showed confidence in Arcutis Biotherapeutics Inc . (NASDAQ:ARQT) by raising their price target on the company’s shares to $21.00, up from the previous $20.00, while maintaining an Outperform rating. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $13 to $29 per share. The adjustment came after Arcutis reported fourth-quarter earnings for 2024 that surpassed expectations, largely due to an unexpected reduction in product return reserves.
The company’s Zoryve franchise sales reached $69.4 million, outperforming the pre-announced figure of approximately $63 million for the same quarter, and notably higher than Mizuho’s forecast of $57 million and the consensus estimate of $55 million. The increase in sales was attributed to a one-time decrease of about $4.1 million in reserves for product returns. InvestingPro data reveals impressive gross profit margins of nearly 90% and strong revenue growth of 183% over the last twelve months.
Mizuho had previously revised its sales forecast for the Zoryve franchise to surpass the consensus, but with year-to-date prescriptions trending above expectations and positive commentary from management regarding gross-to-net sales for 2025, the firm has once again increased its sales projection. The new estimate for the Zoryve franchise’s 2025 sales is approximately $299 million, up from the former forecast of $277 million and ahead of the $289 million market consensus.
Arcutis management has expressed comfort with the market consensus forecast of $289 million, indicating potential for further upside. Mizuho’s updated forecast does not yet fully account for the potential impact of the Kowa primary care and pediatric co-promotion agreement. The firm reiterated its Outperform rating and raised the price target to reflect the positive developments and expectations for the company’s sales growth. InvestingPro subscribers can access 8 additional ProTips and a comprehensive research report covering Arcutis’s financial health, growth prospects, and detailed valuation analysis.
In other recent news, Arcutis Biotherapeutics Inc. reported its fourth-quarter 2024 earnings, revealing a significant earnings per share (EPS) beat. The company announced an EPS of -$0.09, which was notably better than the expected -$0.28. Additionally, Arcutis’ revenue for the quarter was $71.3 million, surpassing the anticipated $54.72 million. This strong financial performance was attributed to successful product launches and expanded market reach. Arcutis is optimistic about its growth trajectory, projecting an annual revenue run rate of approximately $250 million by the end of 2025. The company remains confident in meeting the consensus revenue forecast of $280-$285 million for 2025, driven by new product indications and a broader prescriber base. Arcutis’ leadership emphasized the company’s strategic focus on expanding its market presence and product offerings. These recent developments reflect the company’s robust growth and positive market positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.