Collegium Pharmaceutical: Strengthened 2026 Outlook, Balance Sheet Flexibility, and BD Upside Support Buy Rating and Higher Target

Serge Belanger, an analyst from Needham, maintained the Buy rating on Collegium Pharmaceutical. The associated price target was raised to $56.00.

Serge Belanger has given his Buy rating due to a combination of factors tied to Collegium Pharmaceutical’s updated 2026 outlook and strategic positioning. He highlights that management’s revenue guidance of $805–$825 million, underpinned by Jornay PM contributing roughly $190–$200 million, supports a strong top-line growth trajectory. Jornay PM is expected to remain the primary engine of expansion, helped by an enlarged sales organization, stepped-up promotional activity, and broader market access, all of which reinforce confidence in sustained demand. The company also projects adjusted EBITDA of $455–$475 million, indicating attractive profitability and cash generation relative to its revenue base.
In addition, Belanger points to a significantly improved balance sheet and enhanced financial flexibility following the establishment of a new $980 million credit facility, which was used to retire the remaining Pharmakon loan principal of $581 million. This new facility is intended to support future business development, particularly transactions that can capitalize on Collegium’s existing CNS-focused commercial infrastructure. He expects the company to be willing to increase leverage up to around 3x net debt to EBITDA to pursue value-accretive acquisitions, which could further augment growth beyond the current product portfolio. Taken together—solid organic growth, robust earnings power, and renewed capacity to execute strategic deals—these elements underpin his Buy recommendation and an increased price target of $56.

In another report released today, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $52.00 price target.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of COLL in relation to earlier this year.