Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - H.C. Wainwright has assumed coverage on Collegium Pharmaceutical (NASDAQ:COLL) with a Buy rating and a price target of $44.00, according to a research note released Monday. The $1.1 billion market cap company is currently trading at $34.93, and according to InvestingPro analysis, appears undervalued based on its Fair Value assessment.
The firm cited the "underappreciated growth potential" of Jornay PM and the durability of cash generation from the company’s mature pain franchise as key factors behind its positive outlook.
Jornay PM, acquired through the Ironshore Therapeutics transaction, has emerged as Collegium’s primary growth driver, with prescriptions growing 42% year-over-year in the second quarter of 2025 and 15% sequentially over the first quarter.
Collegium raised its 2025 Jornay revenue guidance to $140 million to $145 million, up from its previous forecast of at least $135 million, reflecting strong commercial momentum for the ADHD medication.
The company also announced a new $150 million share buyback authorization with its second-quarter earnings, which H.C. Wainwright noted demonstrates Collegium’s "current strong financial position."
In other recent news, Collegium Pharmaceutical reported significant revenue growth, with a 29% increase year-over-year in the second quarter of 2025. This marks consecutive quarterly growth driven by strong sales across its branded portfolio. In response to this performance, Truist Securities has raised its price target for Collegium Pharmaceutical to $45, maintaining a Buy rating on the stock. Additionally, the company has announced a new share repurchase program, authorizing the buyback of up to $150 million in common stock through December 31, 2026. This new program replaces a previous authorization that expired with $65 million remaining. As part of this initiative, Collegium has entered into an accelerated share repurchase agreement with Jefferies LLC to repurchase $25 million of its common stock. This transaction is part of the larger repurchase program and follows a 23% year-over-year revenue increase in the first quarter of 2025. The company plans to use existing cash on hand to fund the buyback program.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.