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Investing.com - Truist Securities initiated coverage on Harmony Biosciences Holdings Inc. (NASDAQ:HRMY) with a Buy rating and a price target of $48.00 on Monday. According to InvestingPro analysis, the company appears undervalued, with strong financial health metrics and an "EXCELLENT" overall rating.
The research firm cited the company’s cash flow positive status and projected revenue of approximately $820 million to $860 million for the current year as key factors in its rating decision. The company’s robust financial position is evidenced by its impressive 78% gross profit margin and strong return on equity of 25%.
Truist expects continued growth for Harmony (JO:HARJ)’s Wakix narcolepsy franchise until its loss of exclusivity, projecting the asset will generate more than $1 billion by 2027.
The firm highlighted that companies with stable cash flows are particularly attractive in the current macro-environment, positioning Harmony Biosciences favorably for investors.
Truist also identified potential future growth opportunities for Harmony, including Wakix life-cycle management and new formulations, along with the company’s expanding clinical pipeline. With a healthy current ratio of 3.67 and more cash than debt on its balance sheet, the company appears well-positioned to fund these growth initiatives.
In other recent news, Harmony Biosciences has been active with several important developments. H.C. Wainwright reiterated its Buy rating on Harmony Biosciences, highlighting the company’s strong cash position of over $600 million and upcoming clinical milestones. Goldman Sachs resumed coverage of the company with a Neutral rating, noting the potential for Wakix/pitolisant patent protection to extend until early 2030 following a settlement with Novugen. Mizuho (NYSE:MFG) reaffirmed its Outperform rating, focusing on the potential of the ZYN-002 drug candidate for Fragile X Syndrome, citing an expert’s strong optimism and the drug’s promising clinical prospects. Additionally, Harmony Biosciences announced plans to begin human trials for its experimental orexin 2 receptor agonist, BP1.15205, targeting narcolepsy and related sleep disorders, with trials expected to start in the second half of 2025. Preclinical data presented at a recent meeting demonstrated significant wake-promoting effects in a mouse model, and the company is preparing regulatory submissions for this drug candidate. Mizuho also noted the positive preclinical data for BP1.15205, suggesting it could become a best-in-class asset despite being in early development stages. These developments underscore Harmony Biosciences’ continued focus on advancing its pipeline and maintaining strong financial health.
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