H.C. Wainwright initiates Journey Medical stock with Buy rating on Emrosi potential

Investing.com - H.C. Wainwright initiated coverage on Journey Medical Corp. (NASDAQ:DERM) with a Buy rating and a $13.00 price target on Monday. The stock, which has surged over 90% year-to-date according to InvestingPro data, currently trades at $7.47.

The research firm cited Emrosi’s clinical superiority to market leader Oracea in treating rosacea as a key factor supporting its positive outlook, suggesting the drug could exceed current consensus expectations for prescription demand and revenue. With a healthy gross margin of 66.5%, Journey Medical appears well-positioned to capitalize on Emrosi’s potential.

H.C. Wainwright also highlighted Journey Medical’s broader branded dermatology portfolio, which it described as generating durable revenue and prescriber loyalty that provides a stable commercial foundation for the company.

The firm noted that Journey Medical’s disciplined operating spend and SG&A reductions position the company for EBITDA growth as Emrosi uptake accelerates in the market.

H.C. Wainwright believes DERM shares currently trade at a discount to the biopharma universe, undervaluing Emrosi’s demonstrated superiority against genericized Oracea in head-to-head studies, which could potentially generate over $100 million in revenue.

In other recent news, Journey Medical reported its second-quarter 2025 earnings, which did not meet analysts’ expectations. The company announced an earnings per share loss of $0.16, missing the anticipated loss of $0.11. Despite this, Journey Medical’s revenue slightly surpassed forecasts, coming in at $15.01 million compared to the expected $14.93 million. These developments were part of the company’s recent financial disclosures. Journey Medical’s financial performance reflects mixed results, with revenue showing a positive deviation from projections. The earnings miss, however, highlights challenges the company faces in aligning with market expectations. These updates provide investors with insight into Journey Medical’s current financial standing and recent performance.

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