Key Takeaways
- Harrow shares have fallen 32% in three months, and yesterday BTIG kept its Buy rating and its $63 target, which is about 106% above the stock’s price.
- Harrow’s first-half revenue of $115 million came in below its own expectations, so it needs $235 million to $250 million in the second half to hit its guidance.
- All nine analysts TIKR tracks rate the stock a Buy, and BTIG’s target implies a forward P/E of 35.8x, against 17.4x today.
- BTIG’s call is plausible but stretched, and the third-quarter report is the next test.
Harrow (HROW) shares have lost 32% over the last three months, sliding back toward their May low.
BTIG isn’t flinching: on Wednesday, Oct. 7, analyst Thomas Shrader reiterated his Buy rating and $63 price target, 106% above yesterday’s close.
A first half to forget
In May, first-quarter revenue of $44.2 million fell well short of what analysts expected, and the stock dropped 21% in a day.
The second quarter, reported Aug. 10, was better, with revenue up 11% from a year earlier to $70.7 million. But Harrow lost $0.46 a share, more than Wall Street expected, and CEO Mark Baum conceded on the call that “first half revenue of approximately $115 million was lighter than we expected entering the year.”
Harrow kept its 2026 revenue guidance of $350 million to $365 million anyway, which CFO Andrew Boll said implies $235 million to $250 million in the second half. That’s more than double the first half.
“That is a substantial step-up,” Boll said.
What BTIG sees
BTIG’s case, as reported, rests on VEVYE, Harrow’s dry eye drug, whose second-quarter revenue grew 58% from a year earlier to $29.4 million. Add TYRVAYA, an acquisition Harrow closed on Oct. 5 and expects to bring in more than $30 million in 2027, and BTIG says Harrow is set up to hit its guidance.
Does $63 add up?
The rest of Wall Street agrees: all nine analysts TIKR tracks rate Harrow a Buy, and their mean target has only slipped to $65 from $68 a year ago, while the stock fell from $41.90 to $30.62…
That conviction rests on earnings that haven’t arrived yet. Analysts expect normalized EPS of $0.43 this year, up from $0.20 in fiscal 2025, then $2.77 in 2027…
Only four analysts make that 2027 estimate, and it leans on Boll’s ramp.
On those estimates, Harrow trades at about 17x forward earnings, far below its five-year average of 74x.
Where I land
The balance sheet is the risk: Harrow’s loans rose to $292.4 million at June 30 from $243.2 million at the end of 2025, against $83.9 million of cash.
My take: BTIG’s call is plausible but stretched. The demand is real: IHEEZO and TRIESENCE both set unit-demand records last quarter. But $63 needs the second-half ramp to land and a much higher multiple on top. I’d want to see the ramp start before betting on both.
Management expects the bigger revenue step-up in the fourth quarter. If the third-quarter report shows IHEEZO’s revenue catching up to its demand, $63 starts to look a lot more reasonable.
So what is Harrow stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
