Evaluating Arcutis Biotherapeutics: Insights From 5 Financial Analysts

Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on Arcutis Biotherapeutics ARQT in the last three months.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $15.2, with a high estimate of $17.00 and a low estimate of $11.00. Marking an increase of 60.0%, the current average surpasses the previous average price target of $9.50.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Arcutis Biotherapeutics among financial experts becomes clear 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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Arcutis Biotherapeutics. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Arcutis Biotherapeutics compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Arcutis Biotherapeutics's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Arcutis Biotherapeutics's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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Unveiling the Story Behind 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.

Financial Milestones: Arcutis Biotherapeutics's Journey

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, Arcutis Biotherapeutics showcased positive performance, achieving a revenue growth rate of 356.81% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -490.05%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -97.92%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Arcutis Biotherapeutics's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -20.9%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.32, caution is advised due to increased financial risk.

The Significance of Analyst Ratings Explained

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.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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