Demystifying Arcutis Biotherapeutics: Insights From 5 Analyst Reviews

5 analysts have shared their evaluations of Arcutis Biotherapeutics ARQT during the recent three months, expressing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Arcutis Biotherapeutics, presenting an average target of $19.2, a high estimate of $20.00, and a low estimate of $18.00. Surpassing the previous average price target of $18.50, the current average has increased by 3.78%.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive Arcutis Biotherapeutics is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Arcutis Biotherapeutics. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Arcutis Biotherapeutics compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Arcutis Biotherapeutics's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Arcutis Biotherapeutics's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

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Discovering Arcutis Biotherapeutics: A Closer Look

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: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Arcutis Biotherapeutics's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 17.44% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Arcutis Biotherapeutics's net margin is impressive, surpassing industry averages. With a net margin of -92.81%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Arcutis Biotherapeutics's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -24.21%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -9.42%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Arcutis Biotherapeutics's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.33, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

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.

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