Harmony Biosciences (HRMY): Revisiting Valuation After Strong Q3 Earnings and Improved Profitability

Harmony Biosciences Holdings (HRMY) just shared its earnings report, highlighting higher net income and growing earnings per share for both the third quarter and the first nine months of 2025. Investors are paying close attention to these results.

See our latest analysis for Harmony Biosciences Holdings.

Harmony Biosciences Holdings has caught fresh attention following its upbeat earnings, and that momentum is clearly showing. Its 7-day share price return is up 8.3%, and the stock has surged nearly 28% over the past month. While the 1-year total shareholder return of 2.5% is modest and longer-term returns remain under pressure, the recent share price rally hints that sentiment could be shifting as investors digest the improved results and conference appearances.

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With Harmony Biosciences Holdings’ strong earnings and a recent share price rally, the question now is whether the stock remains undervalued and offers an entry point, or if the market has already accounted for further growth.

Most Popular Narrative: 23.6% Undervalued

With Harmony Biosciences Holdings closing at $34.03 and the most popular narrative estimating a fair value around $44.55, narrative followers see a sizable gap between price and potential. That sets the stage for major debate over whether the current rally reflects the company’s true future prospects.

Expanding addressable markets and a diversified pipeline position Harmony for sustained revenue growth with reduced dependence on any single product. Strong commercial execution and strategic capital management enable continued R&D investment, life cycle extension, and resilience against future competition.

Read the complete narrative.

Wonder how this narrative arrives at such a high fair value? The real story isn’t just headline growth, but the projected leaps in revenue, profit margins, and market reach that power this analyst view. The logic behind these numbers might surprise you. See which key trends and financial leaps give rise to that bold price target. Dive in to uncover the pivotal assumptions behind the future outlook.

Result: Fair Value of $44.55 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on WAKIX and limited pipeline diversification mean that competition or clinical setbacks could quickly undermine the current bullish outlook.

Find out about the key risks to this Harmony Biosciences Holdings narrative.

Build Your Own Harmony Biosciences Holdings Narrative

If you see things differently or want to dig into the numbers yourself, you can pull together your own bullish or cautious story in just minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Harmony Biosciences Holdings.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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