On Friday, Piper Sandler adjusted its outlook on Revance Therapeutics (NASDAQ:RVNC), reducing the stock price target to $11 from the previous $20, while maintaining an Overweight rating on the stock. The adjustment comes after Revance reported first-quarter financial results, revealing an adjusted net loss per share of $0.43 and revenue of $51.9 million.
These figures stood in contrast to the Street's expectations, which anticipated a slightly higher loss per share of $0.46 and revenue of $56.4 million.
Despite the lowered stock price target, the firm's analysts believe Revance is on track to meet its 2024 net sales goal of at least $280 million, a figure that is slightly below the consensus estimate of approximately $292 million. The company's management has indicated that more than half of these sales are projected to come from its RHA product line, according to commentary from Revance.
Revance's Daxxify, a product used in facial aesthetics, is showing promising performance with sales annualizing to nearly $90 million after five full quarters in the market. Moreover, the RHA franchise is annualizing at about $120 million in sales, approximately three years after its launch.
The first quarter is typically the slowest in the facial aesthetics industry, yet these figures suggest potential for the company to reach its stated top-line goals for the year.
The firm's analysis suggests that Revance Therapeutics has a "fighting chance" of achieving its 2024 revenue targets. The analysts forecast that the company could reach a break-even point sometime in 2025. The revised price target of $11, down from $20, reflects more conservative estimates for Daxxify and RHA sales beyond the year 2024.
InvestingPro Insights
Piper Sandler's recent price target adjustment for Revance Therapeutics (NASDAQ:RVNC) to $11 coincides with some critical financial metrics and market performance data. According to InvestingPro Data, Revance's market capitalization stands at $447.08 million, with a significant revenue growth of 76.55% in the last twelve months as of Q4 2023. This growth is notable, especially considering the company's revenue of $234.04 million in the same period.
Despite this revenue upswing, Revance's profitability challenges are evident. The company's P/E ratio is negative, at -1.85, and it has not been profitable over the last twelve months. This aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Moreover, the stock price has experienced a considerable decline over the last year, with a 1 Year Price Total Return of -88.15%.
Still, there is a silver lining. Revance's liquid assets exceed its short-term obligations, suggesting a degree of financial stability. Moreover, the company has seen a significant return over the last week, with a 1 Week Price Total Return of 8.61%. This could indicate investor optimism in the short term, potentially reflecting confidence in the company's strategic direction or product offerings.
For those interested in a deeper analysis, InvestingPro offers additional insights on Revance Therapeutics. There are more InvestingPro Tips available, which could further guide investment decisions. To explore these tips and gain more detailed financial insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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