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On Thursday, H.C. Wainwright initiated coverage on Harrow Health (NASDAQ:HROW) with a Buy rating and set a price target of $57.00. According to InvestingPro data, this target represents significant upside potential from the current price of $31.76, though the stock appears overvalued based on InvestingPro’s Fair Value analysis. The firm’s analyst, Yi Chen, noted Harrow Health’s rapid growth, which has been fueled by its portfolio of branded ophthalmic products. Harrow Health is a commercial-stage company that focuses on the development and commercialization of ophthalmic pharmaceutical products for the U.S. market. It currently holds the U.S. commercial rights to approximately 16 branded products.
Chen highlighted that Harrow Health’s strategy of acquiring branded products that are either in the final stages of development, progressing toward FDA approval, or already approved but underappreciated by their current owners has been successful in driving the company’s top-line growth. This approach has resulted in a 22% year-over-year increase in total revenue to $88.6 million in 2022, and a 47% year-over-year surge to $130.2 million in 2023. InvestingPro data shows this impressive growth trajectory has continued, with the company maintaining a strong 48.15% revenue growth in the last twelve months. For deeper insights into Harrow Health’s growth metrics and 8 additional key ProTips, consider exploring InvestingPro.
Looking forward, H.C. Wainwright projects that Harrow Health’s revenue will continue to grow significantly. The firm estimates that the company’s revenue will reach $191.8 million in 2024, which would represent another 47% year-over-year growth. The analyst expressed confidence that Harrow Health will continue to make meaningful and sensible acquisitions to enrich its ophthalmic product offerings.
The lead products in Harrow Health’s portfolio include VEVYE for dry eye disease, IHEEZO for ocular surface anesthesia, and TRIESENCE for vitreous visualization. These products are key contributors to the company’s growth and are expected to continue to be significant for the company’s future revenue streams.
In summary, H.C. Wainwright’s initiation of coverage on Harrow Health with a Buy rating and a $57 price target reflects a positive outlook on the company’s growth trajectory and its strategic approach to expanding its portfolio of ophthalmic products. While the company has delivered impressive returns of over 210% in the past year, InvestingPro analysis indicates the company maintains a "Fair" overall financial health score of 2.5 out of 5, operating with a moderate level of debt.
In other recent news, Harrow Inc. reported a variety of significant developments. The company announced a robust Q3 growth, with a revenue increase to $49.3 million, marking a 44% rise from the previous year. Despite a temporary shortage of its dry eye product, VEVYE, Harrow reported a 55% increase in prescription volume from the second quarter.
Additionally, Harrow’s wholly owned subsidiary, ImprimisRx, won a legal victory in a trademark infringement lawsuit, with a jury awarding $34.9 million in damages against OSRX, Inc. and Ocular Science, Inc. The company also reported a change in its board composition with Marty A. Makary resigning from his position on the company’s Board of Directors. This was followed by an internal decision to reduce the board’s size from five to four members.
The company also welcomed Dr. Amir H. Shojaei as the new Chief Scientific Officer, succeeding Dennis E. Saadeh, who is retiring. These recent developments reflect Harrow Inc.’s ongoing strategic decisions and growth in the pharmaceutical sector.
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