William Blair initiated research coverage of Cutera, Inc. (CUTR $34.21), a leading global aesthetic device company with a comprehensive product portfolio and a global distribution footprint.
Analyst Margaret Kaczor estimated that the company would increase total sales from $252.4 million in 2022 to $355.5 million in 2024.
“Cutera manufactures and sells devices for use in aesthetics procedures offered at plastic surgeon and dermatologist offices as well as medical spas, and it has found success in launching a number of new light- and energy-based product platforms across various aesthetics verticals, such as skin resurfacing and revitalization, body sculpting, tattoo removal, pigmented and vascular lesion treatment, and most recently acne care,” said Kaczor. “More recently, Cutera has benefited from the accelerating trend toward spending on personal care as individuals choose to allocate their disposable income toward aesthetics/skincare procedures, with many of these procedures gaining widespread societal acceptance particularly during the pandemic era.
“In our view, on a longer-term basis for the company, AviClear, which is the first FDA-cleared energy device for the treatment of the full breadth of mild-to-severe acne, represents Cutera’s next platform product, with it being initially approved in March 2022 and having seen rapid and accelerating adoption in just three quarters,” added Kaczor. “Today, isotretinoin is the standard of care for more severe cases of acne but it comes with stringent regulations and potentially severe side effects. Therefore, AviClear is being introduced by Cutera with the potential to meet a large market of unmet needs for those struggling with acne and who are looking for a nontoxic solution, with 15 million to 16 million patients living with moderate-to-severe acne globally and 8.5 million of those in the United States.”
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Current Ratings Distribution (as of 1/31/23)
Outperform (Buy): 73%
Market Perform (Hold): 27%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 6%
Market Perform (Hold): 2%
Underperform (Sell): 0%
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