Update shared on08 Oct 2025
Fair value Increased 10%Harrow's analyst price target has increased from $61.98 to $68.18. Analysts point to a stronger revenue growth outlook and heightened optimism regarding the company's commercial execution and product pipeline.
Analyst Commentary
Recent Street research reflects growing optimism among bullish analysts regarding Harrow's growth prospects, commercial execution, and valuation potential. However, some analysts continue to monitor areas of uncertainty and execution risk as the company advances its strategic plans.
Bullish Takeaways- Bullish analysts have raised their price targets for Harrow following strong pipeline developments and a well-defined commercial roadmap, indicating robust long-term growth potential.
- Confidence in Harrow's ability to scale its business is increasing. There are expectations for substantial revenue growth and margin expansion through 2027.
- Recent product additions, including ophthalmic biosimilars, are viewed as underappreciated catalysts that could deliver material revenue contributions starting in 2026.
- Early commercial success and fresh product launches reinforce Harrow's positioning as a significant one-stop player in the eye care space. This supports a bullish case for continued operational outperformance.
- While revenue growth projections are positive, some analysts point to uncertainties in commercial strategies for newly introduced biosimilars. Key details have yet to be clarified by management.
- The initial launch of new products has at times resulted in atypical sales patterns, such as temporary declines due to changes in patient payment models. This highlights ongoing commercialization challenges.
- There is some caution that guidance for 2025 may be conservative, leaving open questions on the company's ability to consistently meet or exceed future targets.
What's in the News
- Harrow launched the Harrow Access for All (HAFA) program to improve affordability and access to its ophthalmic medications. The initiative offers predictable pricing and phases in expanded access, with eligible patients paying as little as $0 and a maximum of $59 out-of-pocket. (Key Developments)
- The company dismissed Crowe LLP as its independent public accounting firm and appointed Deloitte & Touche LLP for its 2025 audit. (Key Developments)
- Amended and restated company bylaws were adopted to clarify executive roles and modernize corporate governance language. (Key Developments)
- Harrow reaffirmed revenue guidance for 2025, expecting over $280 million with a target of $169 million in the second half of the year. (Key Developments)
- The company recently held an Analyst/Investor Day event. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has increased from $61.98 to $68.18. This reflects an improved outlook for Harrow's fundamentals.
- Discount Rate remains unchanged at 6.78%, which indicates a stable risk assessment from analysts.
- Revenue Growth projections have risen from 37.6% to 40.0%, suggesting analysts expect higher future sales expansion.
- Net Profit Margin estimates have decreased from 35.63% to 30.43%. This points to expectations of lower margins as the business scales.
- Future P/E Ratio has increased from 14.65x to 17.90x. This implies a higher valuation multiple based on anticipated earnings.
Disclaimer
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