Tarsus Pharmaceuticals (TARS): Revisiting Valuation After a Strong Multi‑Year Share Price Run

Tarsus Pharmaceuticals (TARS) has quietly rewarded patient shareholders, with the stock up about 59% over the past year and more than quadrupling over three years, despite ongoing net losses.

See our latest analysis for Tarsus Pharmaceuticals.

That kind of move, with a recent 30 day share price return of about 17% and a one year total shareholder return nearing 59%, suggests momentum is building as investors reassess Tarsus Pharmaceuticals’ growth prospects against its still loss making profile.

If Tarsus has caught your eye, it could be worth seeing what else is happening across innovative healthcare stocks where new treatments and fresh catalysts are also driving sentiment.

With shares hovering just below analyst targets yet still showing a large intrinsic discount, investors face a key question: is Tarsus Pharmaceuticals attractively undervalued today, or is the market already pricing in its future growth?

Most Popular Narrative Narrative: 4.8% Undervalued

With Tarsus Pharmaceuticals last closing at $81.95 against a narrative fair value of $86.11, the story centers on sustained growth, rising margins, and higher future valuation multiples.

The analysts have a consensus price target of $76.0 for Tarsus Pharmaceuticals based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $92.0, and the most bearish reporting a price target of $45.0.

Read the complete narrative.

Want to see what justifies this richer future multiple and upgraded fair value? The narrative leans on aggressive growth, expanding margins, and bold long term earnings power. Curious which moving pieces really drive that outcome? Read on to unpack the full valuation blueprint.

Result: Fair Value of $86.11 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upbeat outlook could be derailed if XDEMVY adoption slows or if high marketing and R&D spending persistently outpace revenue growth.

Find out about the key risks to this Tarsus Pharmaceuticals narrative.

Build Your Own Tarsus Pharmaceuticals Narrative

If the thesis here does not quite align with your view, or you prefer hands on research, you can build a custom narrative in under three minutes: Do it your way.

A great starting point for your Tarsus Pharmaceuticals research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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