Heron Therapeutics: ZYNRELEF-Led Commercial Inflection and Undemanding Valuation Support Buy Rating and $6 Target

In a report released today, Brandon Folkes from H.C. Wainwright maintained a Buy rating on Heron Therapeutics, with a price target of $6.00.

Brandon Folkes has given his Buy rating due to a combination of factors tied to both operational momentum and valuation support. He highlights that Heron’s fourth-quarter 2025 revenue exceeded expectations, with ZYNRELEF in particular delivering a notably strong performance that surpassed Street estimates and signals renewed commercial traction. In his view, the introduction of the vial access needle and the prospect of a prefilled syringe create a framework for ZYNRELEF to accelerate further, while APONVIE continues to show promise and CINVANTI remains a solid cash contributor despite anticipated pricing pressure. He believes the long‑term revenue opportunity for ZYNRELEF and APONVIE is still not fully reflected in current market expectations, suggesting room for upward estimate revisions if execution remains strong.

At the same time, Folkes underscores that the stock’s valuation appears undemanding relative to peers, as Heron trades at a meaningfully lower EV/Sales multiple based on 2026 consensus despite comparable or better growth potential. He argues that consensus forecasts for 2026 look attainable, with potential upside if the company can build on the recent ZYNRELEF inflection and sustain adoption trends through 2026. This risk‑reward profile, supported by a discounted cash flow analysis that incorporates a conservative cost of capital and a reasonable exit multiple, underpins his $6 price target and Buy recommendation. While he acknowledges execution risk and the need to confirm that recent strength is not a one‑off, he views ongoing uptake of ZYNRELEF as the key catalyst that could drive multiple expansion and share appreciation.