In a report released today, Serge Belanger from Needham maintained a Buy rating on Collegium Pharmaceutical (COLL – Research Report), with a price target of $46.00.
Serge Belanger’s rating is based on several positive indicators for Collegium Pharmaceutical. The company reported strong fourth-quarter performance, surpassing market expectations with a revenue of $181.9 million, driven by the growth of its products Xtampza and Belbuca. This performance highlights the company’s ability to achieve prescription growth and improve gross-to-net ratios, which are crucial for sustaining revenue momentum.
Furthermore, Belanger notes that Collegium Pharmaceutical is actively investing in expanding its sales force to boost sales of Jornay PM, which is expected to enhance future revenue streams. The company’s strategic focus on diversifying its portfolio, particularly by seeking new products in the central nervous system (CNS) space, is seen as a positive move to leverage its expanded sales capabilities. These factors, combined with a valuation that Belanger believes undervalues the company’s growth potential and profitability, support his Buy rating and a price target of $46.
According to TipRanks, Belanger is a 3-star analyst with an average return of 0.6% and a 40.60% success rate. Belanger covers the Healthcare sector, focusing on stocks such as Revance Therapeutics, Viridian Therapeutics, and Trevi Therapeutics.