Truist Securities raises Collegium Pharmaceutical stock price target to $45

Published 07/08/2025, 22:02
Truist Securities raises Collegium Pharmaceutical stock price target to $45

Investing.com - Truist Securities raised its price target on Collegium Pharmaceutical (NASDAQ:COLL) to $45.00 from $42.00 on Thursday, while maintaining a Buy rating on the stock. According to InvestingPro data, analysts’ targets range from $40 to $46, suggesting significant upside potential from the current price of $32.94. The stock appears slightly undervalued based on InvestingPro’s Fair Value analysis.

The research firm cited record quarterly sales driven by growth across Collegium’s branded portfolio. Truist noted that the company’s second quarter of 2025 marked consecutive quarterly growth, with overall revenue increasing 29% year-over-year. This momentum builds on the company’s impressive 17.17% revenue growth over the last twelve months, supported by robust gross profit margins of 87.04%. InvestingPro analysis reveals several more positive indicators about Collegium’s financial health, available in the Pro Research Report.

Jornay PM emerged as the standout performer in Collegium’s portfolio, now commanding 23% market share. This strong performance led management to raise guidance for the ADHD medication, with Truist suggesting the asset could potentially exceed their $450 million peak sales projection.

The firm also highlighted the continued durability of Collegium’s pain franchise, noting there is no immediate threat from generic competition. Ongoing share repurchases were mentioned as providing downside protection for investors.

Truist expressed optimism about Collegium’s second-half outlook, particularly regarding Jornay PM’s prospects heading into what they anticipate will be a robust back-to-school season.

In other recent news, Collegium Pharmaceutical, Inc. reported a strong financial performance for the first quarter of 2025, with net product revenues reaching $177.8 million, reflecting a 23% increase from the previous year. This growth was driven by strong sales in its pain management portfolio and the ADHD medication Jornay PM. Alongside these earnings, the company has initiated a $25 million accelerated share repurchase agreement with Jefferies LLC, as part of a larger $150 million buyback program authorized in January 2024. This program, which replaces a previous authorization that expired in June 2025, allows Collegium to repurchase up to $150 million of its common stock through December 31, 2026. The buyback initiative aims to utilize existing cash reserves for funding. Since 2021, Collegium has returned $222 million to shareholders through share repurchases. The company’s strategic financial moves and robust revenue growth highlight its ongoing efforts to enhance shareholder value.

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