Stifel starts Evolus at buy; PT $27

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Stifel launched coverage of Evolus (NASDAQ:EOLS) with a “buy” rating and 12-month price target of $27. The stock closed at $14.99 on Jan. 28.

“Evolus' success hinges on the potential for Jeuveauto serve as an identical, drop-in, ‘frictionless’ product to premier neurotoxin, Botox, with a marketing angle and pedigree that no other toxin has claimed before,” writes analyst Annabel Samimy.

“Capitalizing on relationship fatigue to the market behemoth, deep inroads into the aesthetics community (as seed investors), and millennial trends, Jeuveau has the potential to become a toxin-of-choice among physicians,” she added.

Ms. Samimy said that as an aesthetics-only company, Evolus would have more flexibility than any other player in this largely consumer market.

Though initial adoption into the market will likely require discounting, “we think Jeuveau could offer a fresh option to a new demographic, 12-to-18 months ahead of innovative competition,” Ms. Samimy said. “With an aspiration of reaching No. 2 toxin within 24 months, we think Jeuveau can reach 15% penetration at peak.”

Stephen Kilmer