Evolus (EOLS) stock target revised by H.C. Wainwright to $20, maintaining Buy rating amid market challenges.

Evolus Inc.'s (EOLS) price target has been revised from $27 to $20 by H.C. Wainwright, maintaining a Buy rating. The company's 2025 projections have been adjusted due to current market difficulties. Evolus operates in the self-pay aesthetic market, generating revenue from product sales in the US and Europe, and service revenue from distribution partners in Canada. The company's revenue growth is 14.1% YoY, with a net margin of -20.4%. The Altman Z-Score is -1.42, indicating distress and a potential risk of bankruptcy.

Evolus Inc. (EOLS), a company operating in the self-pay aesthetic market, reported a quarterly loss of $0.24 per share in the second quarter of 2025, significantly missing the Zacks Consensus Estimate of $0.09 per share [1]. This marks a 166.67% earnings surprise, as the company had expected to post a loss of $0.09 per share. Compared to the same period last year, the loss per share increased from $0.07 to $0.24.

Revenue for the quarter ended June 2025 was $69.39 million, falling short of the Zacks Consensus Estimate of $82.18 million by 16.33%. This is the fourth consecutive quarter where Evolus has missed revenue estimates. Despite these setbacks, the company's revenue grew by 4% year-over-year, driven by its toxin and HHL revenue streams [2].

The company's stock price has been volatile in response to these earnings surprises. Following the report, Evolus shares dropped 2.2% in after-hours trading, closing at $9.11. The stock is currently trading near its 52-week low of $8.65, down 31.56% over the past year [2].

H.C. Wainwright, a financial research firm, has revised its price target for Evolus from $27 to $20, maintaining a Buy rating. The firm attributes this adjustment to current market difficulties and the company's underperformance. Evolus's 2025 projections have been adjusted accordingly [2].

Evolus's financial performance is reflected in its Altman Z-Score, which stands at -1.42, indicating distress and a potential risk of bankruptcy. The company's net margin is -20.4%, and its revenue growth is 14.1% year-over-year.

Looking ahead, the company's strategic cost reductions of $25 million aim for profitability by 2026. Evolus reaffirmed its full-year 2025 revenue guidance of $295-$315 million, with a target for positive operating income by Q4 2025. The company also reiterated its $700 million revenue target by 2028, with a 20% non-GAAP operating income margin [2].

Investors should closely monitor Evolus's earnings outlook and the company's ability to navigate the competitive neurotoxin market. Despite the challenges, Evolus maintains a 14% market share and has shown strong unit growth.

References:
[1] https://www.nasdaq.com/articles/evolus-inc-eols-reports-q2-loss-lags-revenue-estimates
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-evolus-q2-2025-misses-eps-and-revenue-forecasts-93CH-4171595