Wells Fargo Turns Bullish On Revance Therapeutics After Meeting With Management

Earlier this month, Revance Therapeutics Inc RVNC named Mark Foley as its new CEO.

The addition of a commercial-focused CEO, with experience in unlocking shareholder value in aesthetics, is a “major positive,” according to Wells Fargo.

The Analyst

Wells Fargo’s Jacob Hughes upgraded Revance Therapeutics from Market Perform to Outperform raising the price target from $12.50 to $20.

The Thesis

Mark Foley’s strong track record of commercial success in aesthetics is particularly important, as Revance Therapeutics is transitioning from a development stage to commercialization, Hughes said in the upgrade note.

He added that the new CEO will also focus on reducing the company’s operating expenses to curb the rate of cash burn.

Hughes mentioned that Revance Therapeutics had several catalysts over the next six to twelve months, the most notable of which is a biologics license application (BLA) submission for DaxibotulinumtoxinA (DAXI) for treatment of glabellar lines by the end of November.

“Revance growth potential is significant in a multi-billion neurotoxins market, targeting both aesthetic and therapeutic indications,” the analyst wrote. He added that these markets were poised for continued expansion and that disruption from the merger between Allergan plc AGN and AbbVie Inc ABBV could create opportunities to take share.

Price Action

Shares of Revance Therapeutics rose slightly to close trading at $15.42 on Tuesday.

Posted In: Jacob HughesWells FargoAnalyst ColorBiotechNewsUpgradesPrice TargetManagementAnalyst RatingsGeneral

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