In a report released today, Oren Livnat from H.C. Wainwright reiterated a Buy rating on Collegium Pharmaceutical (COLL – Research Report), with a price target of $50.00.
Oren Livnat’s rating is based on several compelling factors that suggest Collegium Pharmaceutical’s stock is undervalued. Despite the current market’s risk-averse nature, Livnat highlights that Collegium is trading at a low multiple of its projected 2025 EV/EBITDA, which is attractive given its consistent outperformance of EBITDA guidance over the past three years. The company’s key products, Nucynta and Belbuca, face potential generic competition, but Livnat believes that significant revenue impact from generics is unlikely until at least 2027 for Nucynta and 2032 for Belbuca, due to patent protections and commercial challenges for competitors.
Moreover, Livnat points out that Collegium’s recent acquisition, JORNAY PM, along with XTAMPZA ER, are expected to contribute significantly to revenue with extended exclusivity. The analyst also notes the company’s strong cash flow projections, which exceed its current enterprise value, and its financial flexibility to pursue growth opportunities. Additionally, Collegium’s share buyback program and low leverage ratio further support the Buy rating, as these factors indicate a solid financial position and potential for shareholder returns. Overall, Livnat sees the stock as a low-risk investment with significant upside potential.
According to TipRanks, Livnat is a 3-star analyst with an average return of 1.3% and a 43.26% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Trevi Therapeutics, Avadel Pharmaceuticals, and ANI Pharmaceuticals.
In another report released on March 17, Jefferies also reiterated a Buy rating on the stock with a $40.00 price target.
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