What Happened?
Shares of skincare company BeautyHealth (NASDAQ: SKIN) fell 5.5% in the afternoon session after TD Cowen raised its price target on the stock to $2.50 from $2.00 but maintained its 'Hold' rating.
The analyst note indicated that the CEO's reset plan appeared to be effective, with progress in managing device sales and innovation in consumables. However, the decision to keep a neutral 'Hold' rating likely signaled to investors a lack of strong conviction in the stock's near-term potential, overshadowing the modest price target increase.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy BeautyHealth? Access our full analysis report here, it’s free.
What Is The Market Telling Us
BeautyHealth’s shares are extremely volatile and have had 67 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock dropped 7.8% on the news that a key competitor, Waldencast, announced it received FDA approval for its Obagi saypha MagIQ injectable hyaluronic acid gel.
This approval marks Waldencast's entry into the U.S. dermal filler market, a move expected to double its Obagi Medical brand's total addressable market to approximately $4.2 billion by 2029. The new product, planned for a 2026 launch, introduces a significant competitive threat for existing players like BeautyHealth. Compounding the pressure, broader market headwinds may also be weighing on investor sentiment, with some beauty-sector reports pointing to an "uncertain US market."
Additionally, recent news has highlighted the health risks of cosmetic injections from untrained practitioners, adding to concerns around the industry.
BeautyHealth is up 34.5% since the beginning of the year, but at $2.17 per share, it is still trading 17.7% below its 52-week high of $2.63 from September 2025.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
