Needham Is Bullish On This Botox Equivalent Aesthetics Company

Needham initiated coverage on Evolus Inc EOLS with a price target of $18.00 (43% upside) and a Buy rating.
Evolus is a pure-play aesthetics company focused on growing the presence of Jeuveau, its new neurotoxin product, in the approximately $3 billion global wrinkle treatment market.
Jeuveau is a prescription medicine injected into muscles to improve the look of moderate to severe frown lines between the eyebrows (glabellar lines).
Needham views Evolus as an emerging star in aesthetics and believes no product is better positioned than Jeuveau to increase its presence. The analyst notes the modern and hip branding/marketing strategy that appeals to younger consumers.
The aesthetic market is transitioning towards younger consumers, representing a transformational boost for aesthetics, given that they represent the largest consumer cohort in the U.S. population (~140 million).
Needham expects Jeuveau to remain a disruptive force and expand its market share from 7-9% to ~15%.
The analyst expects peak sales of $400 million - $500 million. He believes investors have yet to recognize Jeuveau's ability fully.
Price Action: EOLS shares are up 3.45% at $12.58 during the market session on the last check Friday.

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