TARS Should I Buy
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Tarsus Pharmaceuticals Inc (TARS) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock shows strong growth potential, supported by favorable analyst ratings, a bullish technical setup, and significant hedge fund buying activity. Despite insider selling and short-term financial challenges, the company's long-term growth trajectory and market opportunity make it a compelling investment.
The technical indicators for TARS are bullish. The MACD is positive at 0.178 and contracting, suggesting upward momentum. The RSI is neutral at 31.691, and the moving averages are aligned bullishly (SMA_5 > SMA_20 > SMA_200). Key support is at 67.337, and resistance is at 73.732, with the current pre-market price at 66.46, close to the support level, indicating a potential entry point.
Analysts have consistently raised price targets, with the most recent target at $105, citing strong sales guidance and market penetration potential.
Hedge funds have significantly increased their buying activity, up 987.14% last quarter.
Approval of TP-03 in the Greater China region by its Chinese partner, Grand Pharma, ahead of schedule, adds to the growth narrative.
Insiders have been selling shares, with a 1503.33% increase in selling activity over the last month.
The company's net income and EPS have declined significantly year-over-year, with net income down -63.77% and EPS down -66.67%.
In Q4 2025, Tarsus Pharmaceuticals reported a revenue increase of 128.39% YoY to $151.67M, driven by strong sales growth. However, net income dropped to -$8.37M (-63.77% YoY), and EPS fell to -$0.2 (-66.67% YoY). Gross margin improved slightly to 92.8%, indicating operational efficiency despite profitability challenges.
Analysts are overwhelmingly positive on 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 sales guidance, market penetration potential, and favorable risk/reward dynamics as key drivers.
