On Friday, a Craig-Hallum analyst increased the price target for Harrow Health (NASDAQ: NASDAQ:HROW) shares to $30.00, up from the previous $26.00, while maintaining a Buy rating on the stock. The adjustment reflects encouraging prescription and volume data for Harrow Health's products Vevye and Iheezo, which are performing better than anticipated.
The analyst noted that the revised figures for 2024 are slightly higher due to the positive trends in the pharmaceutical company's products. Harrow Health has several potential opportunities for outperformance in the current year, with Triesence's contribution being one of the possible drivers.
In addition to the improved sales outlook, the analyst anticipates an increase in selling, general, and administrative (SG&A) expenses for Harrow Health in 2024 and more significantly in 2025. This expected rise in expenses is attributed to the planned expansion of the salesforce for Vevye.
The decision to raise the price target to $30 is a direct consequence of these developments, as outlined by the analyst. The positive trend in prescription and volume data has provided a more optimistic view of Harrow Health's financial prospects, leading to this revised price target.
In other recent news, Harrow Health, a prominent eye care pharmaceutical company, has made significant strides in the production of TRIESENCE®, a critical drug that has been absent from U.S. markets for over two years.
The company's successful manufacture of the first process performance qualification (PPQ) batch marks a crucial step towards addressing the drug's long-standing shortage. As part of the ongoing efforts, Harrow is preparing for the production of the remaining batches, aiming to relaunch TRIESENCE within 2024.
In the financial sector, Harrow Health reported a notable 33% increase in Q1 2024 revenue compared to the previous year, despite challenges such as a cyber-attack impacting sales. This growth is attributed to recent product launches and strategic agreements, with the company maintaining its annual revenue guidance of over $180 million.
Lake Street Capital Markets has revised its outlook on Harrow Health, raising its price target from $20 to $25 while maintaining a 'Buy' rating. This decision is based on confidence in Harrow Health's product pipeline, particularly the opportunities associated with VEVYE, IHEEZO, and TRIESENCE.
The company's recent establishment of new relationships with seven large organizations of eye care professionals and the appointment of a new head of sales are further expected to bolster Harrow Health's business prospects. These developments reflect the ongoing momentum and strategic initiatives undertaken by Harrow Health.
InvestingPro Insights
Following the analyst's enhanced outlook on Harrow Health, key metrics from InvestingPro fortify the company's recent performance and future prospects. The company's market capitalization stands at a robust $705.16M, reflecting investor confidence. Notably, Harrow Health has demonstrated a significant return over the last week with a 10.91% price total return, which aligns with the analyst's positive sentiments. Moreover, the impressive 20.86% and 88.37% price total returns over the last month and three months, respectively, underscore the stock's robust upward momentum.
An InvestingPro Tip suggests that Harrow Health's stock is currently in overbought territory according to the RSI, which may interest traders looking for potential price corrections. Additionally, the company's liquid assets surpassing short-term obligations is a reassuring sign of financial stability. It's worth noting that Harrow Health is not anticipated to be profitable this year, and it has been trading at a high Price/Book multiple of 11.64, which could be a point of consideration for value-focused investors.
For readers seeking more in-depth analysis, InvestingPro offers additional tips on Harrow Health that could further inform investment decisions. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the full range of insights available for Harrow Health at InvestingPro.
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