Street Calls of the Week
Investing.com - H.C. Wainwright has reiterated its Buy rating and $55.00 price target on Harmony Biosciences Holdings Inc. (NASDAQ:HRMY) following the company’s preliminary third-quarter results. The stock, currently trading at $29.60, appears undervalued according to InvestingPro analysis, with analyst targets ranging from $31 to $62.
On October 23, Harmony pre-announced preliminary third-quarter 2025 WAKIX net product revenue of approximately $239 million, representing a 29% year-over-year increase and 19% sequential growth. The results significantly exceeded H.C. Wainwright’s estimate of $225 million and the consensus expectation of $220 million. The company maintains impressive profitability metrics, with a gross margin of 78.3% and a P/E ratio of 9.6x, according to InvestingPro data.
Harmony management raised its 2025 revenue guidance to $845-$865 million from the previous range of $820-$860 million, reflecting 20% growth at the midpoint. The updated guidance compares to H.C. Wainwright’s 2025 estimate of $853 million and the consensus forecast of $842 million.
WAKIX achieved its highest ever quarterly increase in average patient numbers, adding approximately 500 patients to reach 8,100 average patients in the third quarter of 2025. This acceleration puts the narcolepsy treatment on trajectory toward potential blockbuster status.
H.C. Wainwright cited Harmony’s progressing pipeline of early and late-stage assets as additional factors in maintaining its positive outlook on the company, describing Harmony as "one of the most compelling growth stories in neurology."
In other recent news, Harmony Biosciences Holdings , Inc. reported preliminary third-quarter revenue of approximately $239 million for its narcolepsy drug WAKIX, marking a 29% increase compared to the previous year. The company attributed this growth to the highest-ever quarterly rise in patient numbers, reaching an average of 8,100 patients using WAKIX during the period. Despite this positive revenue report, several financial analysts have adjusted their price targets for Harmony Biosciences. UBS lowered its target to $43 from $50, citing competitive pressures and setbacks in their drug approval process. Similarly, H.C. Wainwright reduced its target to $55 from $70 following the Phase 3 trial failure of ZYN002 for Fragile X Syndrome. Mizuho also adjusted its target to $35 from $50, maintaining an Outperform rating despite the trial setback. Lastly, Oppenheimer decreased its price target to $62 from $70, removing Fragile X Syndrome from its financial model for the company due to the trial results. These developments reflect the mixed outlook for Harmony Biosciences amid its recent earnings performance and clinical trial challenges.
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