The Beauty Health Company (SKIN) PT Raised to $23 at Jefferies After All Measures Outperformed

Jefferies analyst Stephanie Wissink raised the price target on The Beauty Health Company (NASDAQ: SKIN) to $23.00 (from $22.00) after the company delivered solid Q2 growth of +57% on 2YR basis. All key measures outperformed. The Installed base of delivery systems now nears 18K and consumables sales continue to advance implying evidence of strong utilization.

The analyst reiterated the Buy rating, stating "It's this combination - installation & utilization - that powers the growth model. As promised, mgmt is redirecting upside to growth investment, including a consumer-oriented HH system launch in Q4 and core system 2.0 in FY22." "Our FY21 sales estimate increases to $233M, with higher expenses across Selling, R&D, and G&A leaving '21 Adj-EBITDA of $25M unchanged. We expect growth investments will taper and see margin improvement in FY22, driving us to increase our Adj-EBITDA estimate in FY22 and FY23 to $51M/$69M, respectively. We reiterate Buy rating and raise PT to $23 on unchanged 8x EV/ FY23 Sales multiple."

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