Harrow Health’s Growth Trajectory: A Buy Rating Amid Strong Product Performance and Strategic Market Investments

B.Riley Financial analyst Mayank Mamtani reiterated a Buy rating on Harrow Health (HROW – Research Report) today and set a price target of $26.00.

Mayank Mamtani’s rating is based on the promising outlook of Harrow Health’s three main growth products, which he believes are poised to drive significant revenue growth for the company. During the fourth quarter of 2023 and the full year 2024 outlook conference, Harrow Health revealed encouraging developments regarding their key growth drivers, which exceeded expectations and led to a recovery in stock price. This positive momentum, coupled with anticipated strong year-over-year and compounded annual growth rates for the company’s revenue, underpins Mamtani’s continued confidence in the stock. Despite a modest downward adjustment in the price target from $30 to $26, Mamtani maintains a Buy rating due to the long-term growth potential of Harrow Health’s core products and the company’s strategic investment in market development.

The detailed analysis by Mamtani points to several specific factors that bolster the Buy rating. These include the integration of IHEEZO into the CMS’ ASP File, allowing for separate billing and expected to reflect in increased script volume starting the second quarter of 2024. Moreover, TRIESENCE is set to return to the market with the first commercial-scale batch results due soon, while VEVYE’s early commercial launch metrics are already surpassing internal expectations and are projected to capture market share in the Dry Eye Disease (DED) market. The targeted commercial strategy for VEVYE, which is resource-efficient compared to MEIBO’s launch, supports the anticipated ramp-up in selling, general, and administrative (SG&A) expenses without significantly affecting adjusted EBITDA growth. These factors, along with the company’s proactive approach to managing CMS engagement and market re-entry strategies, lay the foundation for Mamtani’s optimistic valuation of Harrow Health.

In another report released today, Lake Street also maintained a Buy rating on the stock with a $20.00 price target.

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Harrow Health (HROW) Company Description:

Harrow Health Inc is an ophthalmology-focused pharmaceutical company. The company is specialized in the development, production, and sale of medications that offer competitive advantages and serve unmet needs in the marketplace. Its cornerstone of ophthalmology program consists of proprietary Dropless Therapy injectable and LessDrops topical formulations that are designed to address patient compliance issues and provide other compelling medical and economic benefits.