HROW: Expanding Ophthalmic Portfolio Will Drive Long-Term Revenue Mix Diversification

Analysts have raised their blended price targets for Harrow into a higher range, highlighted by recent increases to $66, $70, $74, and $94 per share. They cite a stronger long-term revenue and margin outlook supported by ophthalmic biosimilars, Vevye ramp expectations, and a more visible commercial roadmap.

Analyst Commentary

Analyst revisions across the Street underscore growing confidence in Harrow's long term growth algorithm, with successive target hikes clustered in the mid to high double digits. The updates follow both quarterly results and recent investor and analyst days, which have provided greater visibility into the company’s commercial roadmap, revenue mix, and margin trajectory.

While most perspectives remain optimistic, the latest research also highlights execution hurdles that will need to be cleared for the company to fully justify higher valuation levels.

Bullish Takeaways

• Bullish analysts see the higher targets as justified by a clearer line of sight to sustained revenue and margin expansion, driven by the ophthalmic portfolio and scaling of newer assets.
• Multiple models now embed meaningful contributions from Vevye, with expectations that ramping prescriptions and broader market penetration can support a premium growth multiple over the next several years.
• The addition of ophthalmic biosimilars is viewed as an underappreciated growth lever, with some forecasts calling for material revenue contributions beginning in 2026 that could diversify and de risk the top line.
• Management has reiterated its ambition to build to $250M plus in quarterly revenue by late 2027, and bullish analysts argue that the updated targets still leave upside if the company executes even near the midpoint of that framework.

Bearish Takeaways

• Bearish analysts caution that near term Vevye revenue is tracking modestly below prior targets, which raises the bar for 2026 growth and increases sensitivity to payer coverage and competitive dynamics.
• There is concern that the valuation now bakes in a high degree of success on both Vevye and biosimilars, leaving less room for operational missteps or slower than expected adoption.
• Some models flag uncertainty around the specific commercial strategies for the biosimilar franchise, noting that limited disclosure on contracting and field deployment could introduce execution risk to out year estimates.
• Higher price targets tighten the margin for error, and more cautious views emphasize that Harrow will need to consistently hit or beat quarterly milestones to support the upgraded expectations embedded in current models.

What's in the News

• Updated 2025 revenue guidance to a slightly more conservative range of $270 million to $280 million, while noting that the original target of over $280 million remains achievable with strong execution (Company guidance filing)
• Launched the Harrow Access for All program to cap out-of-pocket costs at $59 for eligible patients and expand affordable access across branded, generic, and compounded ophthalmic medicines. The program will start with key specialty products in late 2025 and is expected to scale to the full portfolio by 2027 (Company program announcement)
• Announced the upcoming launch of BYQLOVI, a clobetasol propionate ophthalmic suspension 0.05 percent, as part of the initial phase of the Harrow Access for All rollout to support early adoption of new specialty products (Company program announcement)
• Replaced Crowe LLP with Deloitte and Touche LLP as the independent registered public accounting firm, effective for the 2025 fiscal year audit, following action by the company’s Audit Committee (Company 8 K disclosure)

Valuation Changes

• Fair Value: Unchanged at approximately $70.63 per share, indicating a stable long term intrinsic value assessment.
• Discount Rate: Edged down slightly from about 6.96 percent to 6.96 percent, reflecting a marginally lower implied risk profile.
• Revenue Growth: Essentially flat, holding near 39.51 percent, suggesting no material change in long term top line growth expectations.
• Net Profit Margin: Stable at roughly 26.50 percent, indicating consistent assumptions around long term profitability.
• Future P/E: Remains effectively unchanged at about 19.69x, signaling a steady view on Harrow’s forward valuation multiple.