Craig-Hallum bullish on Harrow, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of Harrow with a Buy rating and $24 price target. The firm believes Harrow is undergoing an attractive transformation, though this opportunity is unseized at current levels. For the past decade, Harrow has been largely a compounding pharmacy. A compounding pharmacy customizes medications to meet specific patient needs by combining or altering pharmaceuticals. While they make drugs to regulatory standards, these products are not FDA-approved. With unique risks to this business, the stock at times has traded at modest EBITDA multiples, Craig-Hallum says. However, Harrow is currently making the transition to a branded pharmaceutical company, and the firm sees synergies that make this transition especially attractive.