- Needham initiated coverage on Evolus Inc (NASDAQ: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.
