TARS Should I Buy
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Tarsus Pharmaceuticals Inc (TARS) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The company has strong growth potential, favorable analyst sentiment, and positive catalysts such as the approval of TP-03 in China and promising sales guidance for XDEMVY. Despite short-term insider selling and a slight pre-market dip, the long-term outlook remains strong.
The technical indicators are bullish. The MACD is positively expanding, RSI is neutral at 65.721, and moving averages show a bullish trend (SMA_5 > SMA_20 > SMA_200). The stock is trading near its resistance level (R1: 70.931), suggesting potential for upward movement.
Approval of TP-03 in China for Demodex blepharitis, ahead of schedule.
Strong FY26 sales guidance for XDEMVY, with potential for $2B+ in peak U.S. sales.
Hedge funds are significantly increasing their positions in the stock.
Insider selling has increased by 1503.33% in the last month.
Net income and EPS have declined significantly YoY despite revenue growth.
In 2025/Q4, revenue increased by 128.39% YoY to $151.67M, driven by strong product performance. However, net income dropped by 63.77% YoY to -$8.37M, and EPS fell by 66.67% YoY to -0.2. Gross margin improved slightly to 92.8%, indicating efficient cost management.
Analysts are highly optimistic about TARS, with multiple firms raising price targets recently. Mizuho raised its target to $101, Oppenheimer to $105, and Guggenheim to $90, all maintaining Outperform or Buy ratings. Analysts highlight strong execution on XDEMVY's U.S. launch and the company's growth potential in the underpenetrated Demodex blepharitis market.
