Arcutis Biotherapeutics’ (ARQT) “Buy” Rating Reaffirmed at Mizuho

Arcutis Biotherapeutics is a biopharmaceutical company that specializes in developing and commercializing treatments for dermatological conditions. The company's lead product candidate, ARQT-X101, is a topical treatment for atopic dermatitis (AD), a chronic skin condition characterized by inflammation and itching.

On Friday, Mizuho reaffirmed its buy rating on shares of Arcutis Biotherapeutics NASDAQARQT. This means that the firm believes that the stock is undervalued and has the potential for significant growth in the future. In addition to the buy rating, Mizuho also increased its price target on the stock from $8.00 to $16.00.

Other analysts have also issued research reports about the company. Jonestrading, for example, reaffirmed a hold rating on the stock, indicating that they believe it is currently trading at fair value and do not see significant upside potential in the near term.

It's worth noting that Arcutis Biotherapeutics has been making progress in developing its lead product candidate, ARQT-X101. In March 2023, the company announced positive results from a phase 2b clinical trial of ARQT-X101 in patients with moderate to severe AD. The trial met its primary endpoint of reducing itching and demonstrated significant improvements in other measures of disease activity compared to placebo.

Based on these positive results, Arcutis Biotherapeutics is planning to initiate a phase 3 clinical trial of ARQT-X101 later this year. If the drug is successful in this trial, it could potentially be approved by regulatory agencies and become available for patients with AD.