Rockwell Medical: Improving Margins, Strong Liquidity, and DCF Valuation Support Reiterated Buy Rating

Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Rockwell Med and keeping the price target at $2.50.

Ram Selvaraju has given his Buy rating due to a combination of factors related to Rockwell Medical’s recent performance and outlook. The company’s preliminary fourth-quarter 2025 revenue of approximately $18.6 million and expected full-year 2025 sales of about $69.5 million both came in ahead of his prior estimates, indicating stronger-than-anticipated business momentum. In addition, Rockwell Medical is projecting a notable improvement in gross margin to roughly 22% for 4Q25 compared with 14% a year earlier, suggesting improving operational efficiency. Selvaraju also highlights management’s expectation of ending 2025 with around $25 million in cash and liquid investments, which supports the company’s liquidity position and ability to execute its strategy.
Selvaraju modestly raises his 2026 revenue forecast to $76.1 million, reflecting increased confidence in Rockwell Medical’s growth trajectory. His valuation is based on a discounted cash flow model that yields an implied firm value of about $106 million, including the company’s projected cash and outstanding debt, and supports a 12‑month price target of $2.50 per share using a 10% discount rate, 27% effective tax rate, and 0.5% terminal growth rate. While he acknowledges risks such as potential challenges in market adoption, partnership execution, commercialization, and cost discipline, he views the risk‑reward profile as favorable at current levels. On balance, the combination of better‑than‑expected financial performance, improving margins, solid liquidity, and a DCF‑supported valuation underpins his reiterated Buy recommendation on Rockwell Medical.

In another report released on January 21, Maxim Group also maintained a Buy rating on the stock with a $5.00 price target.