Mizuho reiterates Outperform rating on Evolus stock, citing valuation

Published 21/08/2025, 11:12
Mizuho reiterates Outperform rating on Evolus stock, citing valuation

Investing.com - Mizuho (NYSE:MFG) has reiterated an Outperform rating and $19.00 price target on Evolus (NASDAQ:EOLS) following a two-day non-deal roadshow with the company’s management team. The target represents significant upside from the current trading price of $7.23, with analyst targets ranging from $17 to $20. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model.

The investment firm highlighted Evolus’ "compelling valuation" as a key theme that resonated throughout meetings with primarily large high-quality long-only investors. Mizuho noted that Evolus currently trades at approximately 1.8x EV/2025E sales compared to historical comparables of 4-5x. InvestingPro data shows the company maintains healthy fundamentals with a strong gross margin of 67.18% and a current ratio of 2.27, indicating solid liquidity position.

With a market capitalization of $467.68 million and revenue growth of 17.15% over the last twelve months, Evolus presents an interesting case despite recent market challenges. While the stock has experienced volatility, with a 48.32% decline over the past six months, Mizuho reported that some investors indicated they might make an ownership exception due to the attractive valuation combined with what they view as a compelling company profile. Discover more detailed insights and 8 additional key ProTips with a subscription to InvestingPro.

Mizuho cited several factors supporting its positive outlook, including large underpenetrated markets for neurotoxin and HA dermal fillers, two long-duration assets (Jeuveau and the Evolysse line), and the company’s expected near-term profitability in the fourth quarter of 2025 and full-year 2026. While InvestingPro data indicates analysts don’t expect profitability this year, the company’s strong liquidity position supports its growth trajectory.

The firm expressed confidence that the second quarter of 2025 represented a reset for Evolus and predicted that overall second-half 2025 sales should improve compared to the first half of the year.

In other recent news, Evolus Inc . reported its second-quarter 2025 earnings, revealing a wider-than-expected loss with earnings per share at -$0.27, missing the forecasted -$0.10. The company’s revenue for the quarter reached $69.4 million, marking a 4% increase year-over-year, yet it fell significantly short of the consensus estimate of $82 million. Analysts from H.C. Wainwright and BTIG responded by lowering their price targets for Evolus to $20 and $18, respectively, while both maintained a Buy rating on the stock. H.C. Wainwright cited market headwinds as a factor, while BTIG pointed to the company’s disappointing revenue figures and a decline in Jeuveau sales. In addition to financial results, Evolus submitted the final module of its Premarket Approval application to the FDA for its Evolysse™ Sculpt product. The company anticipates the FDA’s review and potential approval in the second half of 2026. These developments are part of the latest updates surrounding Evolus.

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