Last Updated: 09 Nov 2024
Executive Summary
Revance Therapeutics (RVNC) is a biotechnology company focused on developing and commercializing neuromodulators for aesthetic and therapeutic indications. Despite strong revenue growth, the company remains unprofitable, with a trailing twelve-month EBITDA loss of $179 million. Analysts generally rate the stock as a "Hold," with a target price of $8.95.
Company Overview
Revance Therapeutics is headquartered in Newark, California and has operations in the United States and internationally. The company's lead product, DAXI, is an injectable neuromodulator for the treatment of glabellar lines (frown lines). DAXI is currently approved in the United States and Europe.
Fundamental Analysis
Revenue: Revenue for the latest twelve months (TTM) was $254.3 million, representing a 5.5% growth year-over-year.
Earnings: The company reported a TTM net loss of $179.1 million, resulting in a loss per share of $2.2.
Profitability: Revance has negative profit margins, with a gross profit margin of -0.725% and an operating margin of -0.539%.
Valuation: The stock trades at a price-to-sales ratio of 1.526 and a price-to-book ratio of 12.3.
Technical Analysis
Trend: The stock is currently in a downtrend, with the 50-day and 200-day moving averages below the current price.
Support and Resistance: Key support levels are at $2.30 and $3.00, while resistance levels are at $4.00 and $4.68.
Momentum: Momentum indicators, such as the Relative Strength Index (RSI), are below 50, indicating bearish sentiment.
Short Term Outlook
In the short term, Revance's stock price is likely to face headwinds due to its negative profitability and technical weakness. The stock may continue to trade within the $2.30-$4.00 range.
Long Term Outlook
The long-term outlook for Revance depends on the success of its pipeline products, including its next-generation neuromodulator candidate, RT002. If these products are successful, the company could achieve profitability and drive share price appreciation. However, the competitive landscape in the neuromodulator market is intense, and there is no guarantee of success.
Analyst Recommendations
Analysts generally rate Revance as a "Hold." Out of 10 analysts, 1 recommends a "Buy," 9 recommend a "Hold," and none recommend a "Strong Buy" or "Sell." The median analyst target price is $8.95, implying a potential upside of 140% from the current price of $3.7.
