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Monday saw H.C. Wainwright analyst Yi Chen increase the price target for Harrow Health (NASDAQ:HROW) shares to $60.00, up from the previous $57.00, while maintaining a ’Buy’ rating on the stock. The adjustment follows Harrow Health’s announcement of its first-quarter financial results for 2025. According to InvestingPro data, analysts maintain a strong bullish consensus on the stock, with a median price target suggesting significant upside potential.
Harrow Health reported total revenue of $47.8 million for the first quarter of 2025, marking a 38% year-over-year growth. However, this figure fell short of H.C. Wainwright’s expectation of $61.0 million. The company experienced a net loss of $17.8 million, or $0.50 per share, which was a significant deviation from the projected income of $1.5 million. Despite recent challenges, InvestingPro data shows impressive long-term growth, with trailing twelve-month revenue reaching $212.86 million and maintaining a robust gross profit margin of 74.53%.
Management attributed the lower revenue in the first quarter to seasonal trends. Despite this, Harrow Health saw a 35% quarter-over-quarter increase in VEVYE revenue, rising from $16.0 million in the fourth quarter of 2024 to $21.5 million in the first quarter of 2025. The company has observed an uptick in demand for its product portfolio in the second quarter of 2025, as inventories from year-end stocking were largely depleted. While the stock has experienced a 51% decline over the past six months, InvestingPro analysis suggests the company is slightly undervalued at current levels, with additional insights available in the comprehensive Pro Research Report.
The successful launch of the VEVYE Access for All program was highlighted, which led to a substantial increase in new VEVYE prescriptions filled at PhilRx. The number of prescribers grew fourfold, and the average patient covered by insurance received nine refills of VEVYE. Analysts believe that VEVYE could be the key driver of Harrow Health’s growth in the upcoming quarters, followed by other products such as IHEEZO and TRIESENCE. This growth potential is reflected in InvestingPro’s forecast data, which indicates expected profitability this year, supported by the company’s strong 53.49% revenue growth over the last twelve months.
Reiterating its confidence in the company’s prospects, Harrow Health’s management confirmed their target for over $280 million in revenue for 2025, which would represent a growth rate of over 40% for the year. Based on projected revenues for the next 12 months, from the second quarter of 2025 to the first quarter of 2026, H.C. Wainwright has set a price objective of $60 per share for Harrow Health, leading to the revised price target.
In other recent news, Harrow Health Inc. reported disappointing first-quarter 2025 earnings, missing both earnings per share (EPS) and revenue forecasts. The company posted an EPS of -$0.50, significantly missing the forecasted $0.06, while revenue came in at $47.8 million, below the expected $61.13 million. Despite these setbacks, Harrow Health highlighted a 38% year-over-year increase in revenue and a record $19.7 million in cash flow from operations. The company remains optimistic about achieving its full-year 2025 revenue guidance of over $280 million, driven by strong performance in its Vevi product line, which saw a 35% sequential increase in revenue. Analysts have expressed concerns over the earnings miss, but Harrow Health continues to focus on strategic initiatives to capture market opportunities, particularly in the cyclosporine market. The company also addressed one-time expenses impacting quarterly performance and remains committed to its growth strategy. Harrow Health’s management is confident in the potential for stronger performance in the latter half of the year.
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