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On Thursday, H.C. Wainwright adjusted its price target for Harmony Biosciences Holdings Inc. (NASDAQ:HRMY), reducing it to $70 from the previous $75, while maintaining a Buy rating on the stock. The adjustment follows Harmony (JO:HARJ)’s disclosure of its fourth-quarter and full-year 2024 financial results on February 25, along with updates on its product pipeline. According to InvestingPro data, the company maintains strong fundamentals with a healthy gross profit margin of 78% and impressive revenue growth of 22.8% over the last twelve months. Analysis suggests the stock is currently undervalued based on InvestingPro’s Fair Value model.
The company confirmed its revenue guidance for 2025, projecting between $820 million and $860 million. This forecast aligns closely with H.C. Wainwright’s estimate of $860 million and slightly surpasses the consensus estimate of $849 million. The firm’s confidence in Harmony achieving revenues exceeding $1 billion by 2030 from narcolepsy treatments alone remains undeterred, primarily driven by WAKIX (pitolisant). InvestingPro analysis reveals the company’s strong financial position with a current ratio of 3.31 and more cash than debt on its balance sheet, supporting its growth trajectory. For detailed financial health metrics and additional ProTips, subscribers can access the comprehensive Pro Research Report.
Despite a setback on February 19 when the FDA issued a Refusal to File letter for WAKIX in the treatment of idiopathic hypersomnia (IH), Harmony has reaffirmed its commitment to seeking regulatory approval for pitolisant High-Dose (HD) for IH. If approved, this treatment is expected to become the cornerstone of Harmony’s sleep/wake franchise, which forms the basis of H.C. Wainwright’s valuation of the company.
The reduction in the price target to $70 is attributed to the elimination of projected revenues from WAKIX in IH, which decreased the estimated value of the pitolisant pipeline by $5. Despite this, H.C. Wainwright anticipates 2025 will be a pivotal year for Harmony, with significant clinical milestones expected across its late-stage pipeline, including in areas of sleep/wake disorders, neurobehavioral disorders, and rare epilepsy. With these upcoming catalysts in mind, H.C. Wainwright has reiterated its Buy rating on HRMY shares.
In other recent news, Harmony Biosciences Holdings Inc. reported its fourth-quarter 2024 earnings, revealing a notable earnings per share (EPS) of $1.08, which exceeded the forecasted $0.69. The company’s net revenue for the quarter was $201.3 million, surpassing expectations of $198.6 million, marking a 20% year-over-year growth. Analysts at Cantor Fitzgerald have maintained an Overweight rating for Harmony Biosciences, with a price target of $54.00, following a detailed review of the company’s recent conference call. Mizuho (NYSE:MFG) Securities also reiterated its Outperform rating and $42.00 price target for the company. Harmony Biosciences has provided strong revenue guidance for 2025, projecting between $820 million and $860 million. The company is advancing its clinical pipeline with several key trials, including the Phase 3 trial of ZYN002 for Fragile X Syndrome, expected to yield results in the third quarter of 2025. These developments indicate ongoing confidence in Harmony Biosciences’ growth and strategic direction.
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