Stifel maintains Buy on Evolus stock, sets $25 target

On Wednesday, Stifel analysts maintained their Buy rating and a $25.00 price target on Evolus stock, traded under (NASDAQ:EOLS). The firm’s position follows Evolus’s announcement of fourth-quarter 2024 results, which matched its positive preannouncement. With a market capitalization of $894 million and a beta of 1.28, Evolus, known for its product Jeuveau, reported revenues of $79 million, consistent with consensus estimates, and a year-over-year increase of 32% with total annual revenues reaching $266.3 million. According to InvestingPro, the company maintains strong financial health with a current ratio of 2.47, indicating solid liquidity.

The company’s financial success was attributed to strong seasonal demand and continued market penetration, which resulted in volume increases from both existing and new accounts. Evolus saw a significant uptick in active accounts, now engaging with over 50% of U.S. accounts, and also noted a record enrollment in its loyalty programs, surpassing 1.1 million participants. The company’s impressive gross profit margin of 69.94% reflects its operational efficiency. InvestingPro analysis reveals additional insights about Evolus’s financial health and growth potential in its comprehensive Pro Research Report, available to subscribers.

Looking ahead, Evolus has provided guidance for 2025, projecting revenues between $345 million to $355 million, indicating a growth of 30% to 33%. This optimistic outlook is partly due to the early approval of new products Evolysse SMOOTH and FORM. The company anticipates achieving operating profitability for the full fiscal year.

Stifel’s commentary highlighted Evolus’s evolution into an aesthetics portfolio company, especially after the launch of its new products. Analysts expect that the introduction of a filler offering will not only contribute to new account growth but will also enhance product penetration for Jeuveau. The firm anticipates that following the launch year, operational leverage will become more evident and significant synergies will be realized.

In other recent news, Evolus reported its fourth-quarter 2024 financial results, showing a global net revenue of $79 million, which represented a 30% year-over-year increase. For the full year, Evolus achieved $266 million in net revenue, marking a 32% rise compared to the previous year. Despite missing earnings per share (EPS) expectations with a reported EPS of -$0.11 against the forecasted $0.02, the company surpassed revenue estimates. Evolus also achieved full-year profitability ahead of schedule, with a positive non-GAAP operating income of $0.3 million for 2024, a milestone reached a year earlier than anticipated.

The company has projected total net revenue of $345-$355 million for 2025, reflecting a 30%-33% growth. A significant contributor to this growth is expected to be the newly launched Evolysse product, anticipated to account for 8%-10% of the total revenue for the fiscal year 2025. Evolus’s market share in the U.S. aesthetic toxin category is expanding, supported by the early FDA approval of Evolysse, which is expected to drive future growth. Analyst Douglas Tsao from H.C. Wainwright maintained a Buy rating for Evolus, with a price target of $27, reflecting optimism about the company’s financial trajectory.

Evolus has also made strategic moves to enhance its market presence, including expanding its direct presence in Australia and Spain. The company’s strong sales performance and strategic initiatives are bolstering confidence in its ability to achieve its revenue targets and maintain its growth trajectory in the coming years.

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