The Beauty Health Co.'s First-Mover Advantages Have Turned Goldman Sachs Analysts Bullish


First-mover advantages and projections of a rapidly growing medspa facial treatment market have made Goldman Sachs bullish on The Beauty Health Co. SKIN.

The Beauty Health Analyst: Goldman Sachs analyst Amit Hazan initiated the bank’s coverage of Beauty Health at a Buy with a price target of $31.

The Beauty Health Takeaways: Beauty Health’s lead product, HydraFacial, has “first-mover advantages driving a growing moat for its newly created skin health category,” said Hazan in a note.

HydraFacial’s net promoter score (NPS) of 40 is higher than any other skincare/aesthetic product on the market today (including botox), which is key to driving consumer demand for the product, said Hazan.

“In terms of potential TAM, the numbers are significant at ~ $140B for the global skincare market and within that, the US Medspa facial treatment market alone is ~ $1.3B annually,” Hazan wrote, adding, “International could also represent a notable part of the story here at 2-4x the potential size of the US market.”

Furthermore, Beauty Health has engaged in many initiatives to widen the brand’s competitive moat, including partnerships with leading global retailers such as Sephora and co-marketing partnerships with key opinion-leading physicians and social media influencers, the analyst noted. The company has 40 patents and 20 pending.

Related Link: EXCLUSIVE: Beauty Health Company CEO Clint Carnell on Company's Decision To Go Public, International Expansion

SKIN Price Action: Shares of The Beauty Health Co. were up 7.44% to $18.05 Thursday at publication.

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