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Cantor ups Evolus PT to $20 from $11

Evolus

Cantor Fitzgerald raised its price target for Evolus (NASDAQ:EOLS) to $20 from $11, following a litigation settlement, which Cantor believes “increases earnings visibility for Evolus, and removes a large overhang on the stock.”

Shares of Evolus closed at $12.29 on Feb. 19, when Evolus announced a settlement with AbbVie and Medytox to fully resolve all outstanding litigation, including the U.S. International Trade Commission case, regarding the sale of Jeuveau between the companies. A California court case filed by Medytox against Evolus also will be dismissed.

Jeuveau is the first and only neurotoxin dedicated exclusively to aesthetics and manufactured in a state-of-the-art facility using Hi-Pure technology.

Analyst Louise Chen writes that the settlement enables continued U.S. and internation commercialization of Jeuveau/Nuceiva. “We also think that Evolus may work with its partner, Daewoong, to help with the cost of the settlement since Daewoong has indemnified Evolus,” she added. “This being said, the agreement does not include Daewoong and we think this may be because Evolus wanted to move quickly to get things done.”

Ms. Chen said Evolus aims to become the number two player in its segment in the U.S., but is now third, with an estimated 7% market share.

Last year, Evolus reduced its sales force as a result of the pandemic and the company does not currently expect to increase its sales force, despite the settlement, Ms. Chen added.

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