Last Updated: 08 Nov 2024
Executive Summary
Collegium Pharmaceutical Inc. (COLL), a specialty pharmaceutical company, is currently trading at $34.71. The company's strong fundamentals, including a solid earnings growth and profitability, make it an attractive investment opportunity. Technical analysis suggests a short-term pullback before a potential upside move. Analysts are generally bullish on the stock, with a consensus price target of $43.25.
Company Overview
Collegium Pharmaceutical develops and markets pain management medications. The company's lead product is Xtampza ER, an extended-release oxycodone formulation for the management of moderate to severe pain. Collegium also has a portfolio of other pain management products, including Nucynta ER, a long-acting opioid analgesic, and Subsys, a fentanyl sublingual spray.
Fundamental Analysis
Collegium's financial performance has been strong in recent years. Revenue for the latest quarter was $576.7 million, a 7.2% increase year-over-year. Net income was $96.9 million, up 52.3% year-over-year. Diluted EPS was $2.66, an increase of 52.3% year-over-year.
The company's profitability metrics are also strong. Gross profit margin was 60.1% for the latest quarter, and operating margin was 32.7%. Return on assets was 11.2%, and return on equity was 47.9%.
Technical Analysis
Technically, COLL is currently in a downtrend. The stock has been trading below its 50-day and 200-day moving averages. However, the stock is oversold, and a short-term pullback could provide an opportunity to buy.
Short Term Outlook
In the short term, COLL is likely to experience a pullback before resuming its uptrend. The stock is currently trading below its moving averages, and the RSI indicator is oversold. However, the stock has strong support at $33.00, and a break above this level could signal a reversal of the downtrend.
Long Term Outlook
In the long term, COLL is a strong buy. The company has a solid pipeline of new products, and its financial performance is expected to continue to improve. The stock is currently trading at a discount to its fair value, and a long-term investment in COLL could provide significant returns.
Analyst Recommendations
Analysts are generally bullish on COLL. The consensus price target is $43.25, which represents a potential upside of 24.5% from the current price. One analyst has a strong buy rating on the stock, two have buy ratings, and two have hold ratings. No analysts have sell or strong sell ratings on the stock.
