HROW Stock Forecast & Price Target

Harrow Inc. has exhibited robust growth in its ophthalmic pharmaceutical products, particularly with the launch of VEVYE and IHEEZO, leading to significant increases in prescription volumes and sales; VEVYE alone saw a 55% increase in total prescription volume from 2Q24 to 3Q24, achieving $5.2 million in sales. The company's revenue trajectory also demonstrates strength, with total revenue rising 22% year-over-year to $88.6 million in 2022, followed by a remarkable 47% increase to $130.2 million in 2023. Moreover, adjusted EBITDA reflected substantial growth following the introduction of new branded products, positioning Harrow Inc. for potentially record quarterly revenues in 4Q24.

Harrow Inc. has demonstrated volatility in its operating income and adjusted EBITDA, experiencing a dip in consecutive quarters before recovery, yet it remains vulnerable due to its smaller size and limited financial resources, hindering its ability to capture significant market share. The company faces substantial risks related to regulatory changes, product obsolescence, supply chain disruptions, and challenges in product integration, which could adversely affect growth and profitability. Furthermore, Harrow's substantial $216 million debt obligation and potential dilution risks raise concerns about financial stability and operational continuity in a competitive and rapidly evolving industry.