Guggenheim Starts Aclaris Therapeutis (ACRS) at Buy

Guggenheim initiates coverage on Aclaris Therapeutis (NASDAQ: ACRS) with a Buy rating and a price target of $35.00.

Analyst Louise Chen commented, "Aclaris is a clinical stage dermatology company that has potential to launch a first-in-class product for SK. The company has a late-stage pipeline targeting Seborrheic Keratosis, or SK (Phase 3), Common Warts (Phase 2), and preclinical compounds for Alopecia Areata (ATI-50001 and ATI-50002) and hair loss (JAK inhibitors). We expect upwards earnings revisions to levels not yet reflected in sell-side expectations to drive ACRS shares higher. Upwards earnings revisions could come from:

#1 – Faster-than-expected uptake and higher-than-expected peak sales for A-101 to treat SK.

#2 – The commercialization of A-101 for common warts, which is not reflected in ACRS’s valuation yet.

#3 – Free Call Option on ATI-50001, and ATI-50002 for Alopecia Areata (AA).

Finally, ACRS, in our view, is an attractive company in a consolidating industry where we have seen few standalone successful dermatology companies. Please see page 9 of our report for a list of precedent transactions in the space."

For an analyst ratings summary and ratings history on Aclaris Therapeutis click here. For more ratings news on Aclaris Therapeutis click here.

Shares of Aclaris Therapeutis closed at $21.57 yesterday.

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