BTIG has begun its coverage of Harrow (HROW, Financial) by assigning a Buy rating, accompanied by a price target of $62. The firm highlights the significance of Harrow's 16 key products, many of which are deemed top-tier within their categories. The analyst emphasizes that Harrow's investment appeal lies in its ability to expand the market presence of its current products and acquire new ones, leveraging its strong commercial capabilities.
Furthermore, BTIG anticipates that updates on these strategic initiatives, along with indicators of progress toward Harrow's 2025 revenue target of $280 million, will serve as pivotal factors for stock performance throughout the remainder of 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Harrow Inc (HROW, Financial) is $54.64 with a high estimate of $65.00 and a low estimate of $42.00. The average target implies an upside of 72.86% from the current price of $31.61. More detailed estimate data can be found on the Harrow Inc (HROW) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Harrow Inc's (HROW, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Harrow Inc (HROW, Financial) in one year is $41.54, suggesting a upside of 31.41% from the current price of $31.61. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Harrow Inc (HROW) Summary page.
HROW Key Business Developments
Release Date: May 09, 2025
- Revenue Growth: 38% year-over-year increase in Q1 2025.
- Cash Flow from Operations: Record $19.7 million in Q1 2025.
- VEVYE Revenue: Increased 35% sequentially to $21.5 million in Q1 2025.
- Onetime Expenses: Totaled $3.7 million in Q1 2025.
- Sales and Marketing Team: VEVYE team exceeds 80 professionals; IHEEZO and TRIESENCE team nearly 50 professionals.
- VEVYE Access for All Program: Launched late Q1 2025; quadrupled new prescriptions and prescribers in seven weeks post-launch.
- IHEEZO Sales: April unit sales more than doubled compared to Q1 2025 monthly average.
- TRIESENCE Market Access: Initiatives completed in Q1 2025, unlocking 40% of the market.
- ImprimisRx Compounding Business: Consistent performance; April was a record month.
- 2025 Revenue Guidance: Targeting over $280 million, with $232 million needed over the remaining quarters.
- VEVYE 2025 Revenue Target: At least $100 million expected.
- IHEEZO 2025 Revenue Target: Over $50 million expected.
- Specialty Branded Products 2025 Revenue Target: At least $50 million expected.
- ImprimisRx 2025 Revenue Target: More than $80 million expected.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Harrow Inc (HROW, Financial) achieved a 38% year-over-year revenue growth in the first quarter of 2025.
- The company reported a record $19.7 million in cash flow from operations.
- VEVYE revenue increased by 35% sequentially, indicating strong market performance.
- Market access initiatives for TRIESENCE were completed, enhancing its potential for revenue growth.
- Harrow Inc (HROW) is on track to meet or exceed its 2025 revenue guidance of more than $280 million.
Negative Points
- The first quarter is traditionally the weakest revenue period for Harrow Inc (HROW), impacting overall performance.
- Some business segments experienced softer-than-expected revenues, attributed to seasonality and previous strong quarters.
- The company faced $3.7 million in one-time expenses, affecting financial results.
- There was a reduction in recognizable revenue due to volatility in gross to net estimates for specialty branded products.
- The company is still working on improving its strategy for certain product segments, indicating room for operational improvement.
