Tarsus Pharmaceuticals (TARS) PT Raised to $63 at BofA Securities
BofA Securities analyst Jason Gerberry raised the price target on Tarsus Pharmaceuticals (NASDAQ: TARS) to $63.00 (from $60.00) while maintaining a Buy rating.
The analyst comments "Tarsus reported strong 1Q results with sales of Xdemvy (demodex blepharitis) meaningfully outperforming expectations ($25m vs. $17m cons). Overall, the Xdemvy launch has been progressing with favorable reimbursement updates and better than expected net realized pricing (1Q+; steady state outlook unchanged). Based on early 2Q volume trends, we view management’s outlook for 2Q volumes (similar Q/Q as 1Q) as achievable and we upwardly revise our FY24 Xdemvy sales to $156m (from $114m) though our PO increase is somewhat muted by increase in share count (follow-on offering) and increased S&M investment to drive the upward shift in sales ramp. Stepping back, while TARS shares have meaningfully outperformed (YTD basis) on the strength of the Xdemvy launch, we remain encouraged by script trend, KOL feedback, launch comps and the overall TAM leaves room for upside to ~$1bn peak sales, thus we reiterate Buy and raise our PO to $63 (from $60) on increased Xdemvy sales forecast."