On Monday, Lake Street Capital Markets adjusted its outlook on Harrow Health (NASDAQ:HROW) shares, increasing the price target to $25 from the previous $20, while maintaining a Buy rating on the company's stock.
The revision reflects the firm's confidence in Harrow Health's product pipeline, particularly the opportunities associated with VEVYE and IHEEZO.
The analyst from Lake Street highlighted the encouraging progress of TRIESENCE, Harrow Health's third significant branded pharmaceutical product.
TRIESENCE, which has successfully passed preliminary assays for its process performance qualification (PPQ) batch, is seen as a burgeoning asset for the company.
The established and sizable market for TRIESENCE, along with its relevance to the same doctors who are expected to use VEVYE and IHEEZO, supports the analyst's optimistic stance.
The recent development of new relationships with seven large organizations of eye care professionals is anticipated to have a meaningful impact on Harrow Health's business.
Additionally, the appointment of a new head of sales is strategically positioned to target even larger organizations that are not yet among Harrow Health's clientele.
The Lake Street analyst expressed a positive outlook, without discussing specific financials, based on these developments. The sentiment is buoyed by the potential of Harrow Health's current initiatives and the strategic moves to expand its market reach.
The analyst concluded by reaffirming the Buy rating and endorsing the raised price target, indicating a strong conviction in the company's prospects.
InvestingPro Insights
As Harrow Health (NASDAQ:HROW) garners attention following Lake Street Capital Markets' revised price target, real-time data from InvestingPro offers additional context for investors evaluating the company's stock. Harrow Health's market capitalization stands at $635.11 million, reflecting the scale of the company in the pharmaceutical industry. Despite the lack of profitability in the last twelve months, with a P/E ratio of -19.32 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -20.57, the firm's revenue growth is notably robust, boasting a 49.79% increase over the same period. This growth trajectory is further underscored by a quarterly revenue growth of 32.5% in Q1 2023.
InvestingPro Tips reveal that Harrow Health's stock is considered to be in overbought territory according to RSI metrics, suggesting caution for potential investors. Additionally, analysts do not anticipate the company will be profitable this year, which aligns with the negative earnings per share figures reported. However, the company's liquid assets exceed its short-term obligations, indicating a level of financial stability. Investors interested in a deeper dive into Harrow Health's financials and future outlook can find more insights, including additional InvestingPro Tips, at InvestingPro. For those seeking a comprehensive analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 11 InvestingPro Tips for Harrow Health.
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