The Beauty Health Company (SKIN) PT Lowered to $1.50 at TD Cowen

TD Cowen analyst Oliver Chen lowered the price target on The Beauty Health Company (NASDAQ: SKIN) to $1.50 (from $1.65) while maintaining a Hold rating.

The analyst commented: "Stabilization Year Progresses, Expect Solid Return to Growth in 2027; 4Q revenue was down -1.3% y/y, beating Street expectations for -6.3%, driven by Consumables up +1.7% y/y to $57.7mm (vs. Street’s -1.8%) and Delivery Systems down -7.8% y/y to $24.7mm (vs. Street ~-19.4%). OpEx declined -11% y/y, driving ~700 bps of adj. EBITDA margin expansion. FY26 EBITDA guidance implies ~20% upside vs. Street, though a softer 1Q reflects macro pressure on distributor ordering.

We came away incrementally constructive on the medium-term setup, all else equal, as new leadership outlines a more coherent operating framework centered on execution, learning velocity, and discipline. We view FY26 as an early-innings transition year, evidenced by a U.S. commercial reset toward value-based selling (salesforce restructuring and account segmentation), installed-base activation across ~36k systems, and tighter churn oversight, alongside a more focused innovation roadmap prioritizing clinically backed boosters and selective technology partnerships. We like the core strategy to drive utilization via booster innovation, increase salesforce rigor, and deploy analytics-driven account management to improve activation and retention. Longer term, we believe SKIN has a credible path to evolve into a broader skin-health platform, supported by protocol-driven consumables and ecosystem expansion."

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