Guggenheim analyst Eddie Hickman has increased the price target for Tarsus Pharmaceuticals (TARS, Financial) from $78 to $84 while maintaining a Buy rating on the stock. This adjustment follows the latest quarterly report from the company, which prompted the firm to revise their model to incorporate new spending, script volume, and GTN guidance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Tarsus Pharmaceuticals Inc (TARS, Financial) is $68.86 with a high estimate of $85.00 and a low estimate of $46.00. The average target implies an upside of 36.89% from the current price of $50.30. More detailed estimate data can be found on the Tarsus Pharmaceuticals Inc (TARS) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Tarsus Pharmaceuticals Inc's (TARS, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Tarsus Pharmaceuticals Inc (TARS, Financial) in one year is $231.16, suggesting a upside of 359.56% from the current price of $50.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Tarsus Pharmaceuticals Inc (TARS) Summary page.
TARS Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tarsus Pharmaceuticals Inc (TARS, Financial) reported a significant year-over-year increase of 217% in sales for their product Exteny, generating over $78 million in the first quarter of 2025.
- The company has achieved broad commercial and Medicare coverage, with more than 90% of lives covered, eliminating a major barrier to physician adoption.
- Tarsus Pharmaceuticals Inc (TARS) successfully secured approximately $135 million through an equity financing, strengthening their financial position.
- The company's direct-to-consumer (DTC) campaign has significantly increased website traffic by 140% and is driving patient engagement.
- Tarsus Pharmaceuticals Inc (TARS) is making progress in expanding globally, with potential European regulatory approval for Exteny expected in 2027 and exploring opportunities in Japan.
Negative Points
- Operating expenses increased to approximately $104.6 million, driven by direct consumer advertising and other commercial marketing costs.
- The gross-to-net discount for Exteny was approximately 47%, reflecting adjustments and impacting net revenue.
- There is uncertainty regarding the impact of potential tariffs, although the company believes it would be insignificant.
- The company anticipates more modest revenue growth in the third quarter due to typical sector summer dynamics.
- Despite strong sales, Tarsus Pharmaceuticals Inc (TARS) has not provided long-range guidance on achieving cash flow positivity, as they continue to invest in pipeline development.
