Expert Outlook: Arcutis Biotherapeutics Through The Eyes Of 7 Analysts

Ratings for Arcutis Biotherapeutics ARQT were provided by 7 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

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.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $7.43, along with a high estimate of $10.00 and a low estimate of $4.00. A decline of 72.04% from the prior average price target is evident in the current average.

Exploring Analyst Ratings: An In-Depth Overview

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: 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 gauge the dynamics of price targets, providing estimates for the future value of Arcutis Biotherapeutics's stock. This comparison reveals trends in analysts' expectations over time.

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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Delving into Arcutis Biotherapeutics's Background

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.

A Deep Dive into Arcutis Biotherapeutics's Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Arcutis Biotherapeutics's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 5156.41%. This signifies 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 net margin is impressive, surpassing industry averages. With a net margin of -117.47%, 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 -70.37%, the company may face hurdles in achieving optimal financial returns.

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: Arcutis Biotherapeutics's debt-to-equity ratio surpasses industry norms, standing at 4.39. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: What Are They?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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