Harrow, Inc. (NASDAQ:HROW) is one of the top small cap stocks with huge growth potential. On May 13, Cantor Fitzgerald analyst Steve Seedhouse lowered his price target on Harrow, Inc. (NASDAQ:HROW) from $91 to $88, while keeping his Overweight rating intact. The analyst made the move in response to Harrow’s downward revision to its near-term revenue expectations for VEVYE, the company’s flagship dry eye drug.
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Harrow shared its Q1 2026 results on May 11. The company’s quarterly revenue came in at $44.2 million. Although the figure was lower than the $47.8 million in Q1 2025, management explained that the decline wasn’t too significant because it was largely due to a one-time $8 million gross-to-net revenue adjustment. This adjustment was linked to new VEVYE commercial coverage for high-deductible plan patients who surged beyond initial demand models.
The company detailed that VEVYE posted record new and total prescriptions despite an 18% decline in the overall branded dry eye market. Unit demand for IHEEZO, the company’s product for ocular anesthesia, rose 18% year over year, and 136% year over year for TRIESENCE.
Analyst Steve Seedhouse’s thesis dwelled more on VEVYE because this is Harrow’s flagship product. The analyst pointed to the one-time $8 million gross-to-net revenue adjustment and noted that it created a pricing pressure that hit Q1 revenue but is not expected to recur. For that reason, he cut revenue expectations for the product, and by extension, convinced him to adjust the price target.
Harrow, Inc. (NASDAQ:HROW) is an ophthalmic pharmaceutical company that develops and markets medicines for eye care treatments. Its portfolio includes products for glaucoma, dry eye disease, post-surgical care, and other ophthalmic conditions.
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