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Investing.com - Cantor Fitzgerald initiated coverage on Harrow Health (NASDAQ:HROW) with an Overweight rating and a $76.00 price target on Friday. According to InvestingPro data, this target represents significant upside from the current stock price of $31.37, with analyst targets ranging from $42 to $65.
The research firm highlighted Harrow’s potential to become the leading diversified U.S. ophthalmology company, noting its strategic shift from a legacy compounding pharmacy business to a branded, higher-margin ophthalmic product business. This transformation has already shown results, with InvestingPro data showing impressive revenue growth of 53.49% and strong gross margins of 74.53%.
Harrow’s dry eye product Vevye, which Cantor projects could reach peak sales of approximately $600 million, was already the top prescription in per-prescriber volume for dry eye products in the first quarter of 2025.
The legacy compounding pharmacy business still generates approximately $80 million in annual revenue with gross margins of about 65%, according to Cantor Fitzgerald’s analysis.
Cantor noted that Harrow’s Vevye Access-for-All program is rapidly expanding the prescriber base for its leading product, which the firm identified as a key growth driver for the company.
In other recent news, Harrow Health has reported its first-quarter 2025 financial results, showing a total revenue of $47.8 million, which marks a 38% year-over-year increase but falls short of the expected $61.13 million. The company experienced a net loss of $17.8 million, or $0.50 per share, significantly missing the forecasted earnings. Despite the disappointing quarterly performance, Harrow Health remains optimistic about achieving its 2025 revenue guidance of over $280 million, driven by strong growth in its VEVYE product line. Analysts from BTIG and William Blair have shown confidence in Harrow Health’s potential, initiating coverage with a Buy and Outperform rating, respectively. BTIG set a price target of $62, while William Blair’s fair-value estimate is $63 per share. Meanwhile, H.C. Wainwright increased its price target for Harrow Health to $60, maintaining a Buy rating, despite the revenue shortfall in the first quarter. The analysts emphasize the promising growth trajectory of Harrow’s key products, including VEVYE, IHEEZO, and TRIESENCE, as potential drivers of future success. Harrow Health’s management has reiterated their confidence in meeting the full-year revenue guidance, citing improved market access initiatives and a growing demand for their product portfolio.
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