HROW Stock Forecast & Price Target

Harrow Inc. has demonstrated impressive growth with its ophthalmic pharmaceutical products, notably VEVYE and IHEEZO, both of which have outperformed expectations in terms of prescription volume and market share against established competitors. The company reported a 22% year-over-year revenue increase to $88.6 million in 2022, which accelerated to a 47% rise to $130.2 million in 2023, reflecting strong organic growth and consumer demand. Additionally, the adjusted EBITDA saw substantial gains following the launch of multiple branded products, positioning Harrow for its highest quarterly revenue anticipated in 4Q24.

Harrow Inc. faces significant challenges as its operating income and adjusted EBITDA demonstrated volatility, with a noticeable dip in 4Q23 and 1Q24 that only partially recovered in subsequent quarters. The company's smaller market size and resources hinder its ability to capture significant market share, compounded by potential regulatory changes and advances in biotechnology that threaten the competitiveness of its products. Additionally, risks including difficulties in product acquisition, a $216 million outstanding debt load, and supply chain disruptions may significantly impede growth and negatively impact the company's profitability.