Breaking Down Arcutis Biotherapeutics: 4 Analysts Share Their Views

In the preceding three months, 4 analysts have released ratings for Arcutis Biotherapeutics ARQT, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $12.0, a high estimate of $16.00, and a low estimate of $8.00. This upward trend is evident, with the current average reflecting a 100.0% increase from the previous average price target of $6.00.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of Arcutis Biotherapeutics's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Arcutis Biotherapeutics. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Arcutis Biotherapeutics compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Arcutis Biotherapeutics's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Arcutis Biotherapeutics's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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About Arcutis Biotherapeutics

Arcutis Biotherapeutics Inc is a medical dermatology company. It is developing treatments for patients with immune-mediated dermatological diseases and conditions. It is leveraging recent advances in immunology and inflammation to develop differentiated therapies against biologically validated targets to solve persistent treatment challenges in serious diseases of the skin. The company's lead product candidate ZORYVE roflumilast cream, has successfully completed pivotal Phase 3 clinical trials in plaque psoriasis, demonstrating symptomatic improvement and favorable tolerability in this population.

Arcutis Biotherapeutics's Economic Impact: An Analysis

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Over the 3 months period, Arcutis Biotherapeutics showcased positive performance, achieving a revenue growth rate of 5156.41% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Net Margin: Arcutis Biotherapeutics's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -117.47%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Arcutis Biotherapeutics's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -70.37%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Arcutis Biotherapeutics's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -14.59%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 4.39, caution is advised due to increased financial risk.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.