Update shared on 06 Nov 2025
Fair value Increased 33%Narrative Update on Arcutis Biotherapeutics
Analysts have raised their price target for Arcutis Biotherapeutics from $23.38 to $31.00 per share, citing improved profit margin outlook and a slightly lower discount rate as key factors behind the adjustment.
What's in the News
- The FDA approved ZORYVE (roflumilast) cream 0.05% for mild to moderate atopic dermatitis in children aged 2 to 5, providing a steroid-free topical option for young patients (FDA approval).
- Arcutis launched ZORYVE cream 0.05% for children ages 2 to 5 in the United States. This expands its pediatric portfolio and patient assistance programs (Commercial launch).
- Phase 2 long-term safety data published in a dermatology journal showed ZORYVE foam 0.3% is safe and effective for up to 52 weeks in treating seborrheic dermatitis (Clinical study publication).
- Updated 2025 guidelines from the American Academy of Dermatology include a strong recommendation for ZORYVE cream 0.15% in adult patients with mild to moderate atopic dermatitis (Clinical guideline update).
- Arcutis projects net product revenue between $455 million and $470 million for 2026 (Revenue guidance).
Valuation Changes
- Consensus Analyst Price Target increased from $23.38 to $31.00 per share, reflecting improved expectations.
- Discount Rate decreased slightly to 6.87% from 6.90%, which indicates a marginally lower perceived investment risk.
- Revenue Growth projection reduced from 36.48% to 31.56% annually, suggesting moderated growth expectations.
- Net Profit Margin estimate rose from 33.76% to 35.91%, which signals a more optimistic outlook for profitability.
- Future P/E ratio forecast increased from 16.16x to 20.38x, implying higher anticipated earnings multiples.
Disclaimer
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