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On Monday, analysts at Oppenheimer assumed coverage of Tarsus Pharmaceuticals stock (NASDAQ:TARS) with an Outperform rating and set a price target of $75, joining a bullish analyst consensus with targets ranging from $51 to $93. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis. The decision follows Tarsus Pharmaceuticals’ first-quarter 2025 financial results, which reported a topline of $78.3 million, representing a remarkable year-over-year growth of 449%, surpassing consensus estimates. The company’s volume of approximately 72,000 also exceeded its guidance.
Tarsus Pharmaceuticals’ product XDEMVY has shown considerable momentum, driven by growth initiatives. The management highlighted a shift in prescribing patterns from monthly to weekly, with many target eye care professionals (ECPs) still operating below capacity. The company has noted broad commercial, Medicare, and Medicaid coverage, which is reflected in a gross-to-net ratio of approximately 47%. InvestingPro analysis reveals an impressive gross profit margin of 69.14%, suggesting strong pricing power and operational efficiency. Want deeper insights? InvestingPro offers exclusive access to detailed financial metrics and expert analysis through its comprehensive Pro Research Report.
New data on the global prevalence of Demodex blepharitis (DB), patient burden, and symptom improvements in treated patients are expected to further bolster growth. The expansion of the sales force, along with increased coverage, direct-to-consumer efforts, and evidence generation, is progressing well, supported by a strengthened balance sheet with a cash position of $408 million, including a recent $135 million raise.
Oppenheimer’s analysts expressed confidence in XDEMVY’s potential for continued growth, citing these strategic developments and financial stability as key factors in their rating decision.
In other recent news, Tarsus Pharmaceuticals reported strong financial results for Q1 2025, with net product sales reaching $78.3 million, marking a 217% increase year-over-year. This robust sales growth was primarily driven by their flagship product, Xtendi, with 72,000 bottles dispensed during the quarter. The company ended the quarter with $407.9 million in cash and raised an additional $134.8 million through equity financing. H.C. Wainwright initiated coverage on Tarsus with a Buy rating and set a price target of $72, noting the company’s significant progress with its FDA-approved product, XDEMVY, for Demodex blepharitis.
The analyst from H.C. Wainwright highlighted Tarsus’s position as the sole provider in this market segment and mentioned the potential upside from its broader pipeline, including treatments for ocular rosacea and Lyme disease prophylaxis. Tarsus’s expanded sales force and direct-to-consumer advertising have been pivotal in boosting prescription rates and market penetration. The company is also exploring global expansion opportunities for Xtendi. These developments reflect Tarsus Pharmaceuticals’ strategic initiatives and the confidence of both analysts and investors in its growth trajectory.
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