Ocular Therapeutix, Inc. (OCUL): A Bull Case Theory

We came across a bullish thesis on Ocular Therapeutix, Inc. on TipRanks’ YouTube channel. In this article, we will summarize the bulls’ thesis on OCUL. Ocular Therapeutix, Inc.'s share was trading at $10.43 as of January 13th.

Ocular Therapeutics (OCUL), currently trading at $13.24, has gained 62% over the past year and 13% in the last three months, reflecting strong investor confidence in its innovative ocular therapies. The company develops and commercializes treatments for retinal diseases, glaucoma, ocular hypertension, and postsurgical inflammation using its proprietary Elotex bioabsorbable hydrogel technology.

This platform enables sustained-release drug delivery, improving patient compliance, reducing treatment burden, and enhancing outcomes compared with traditional eye drops or frequent injections. The company is advancing its XPaxley treatment for wet age-related macular degeneration, targeting accelerated NDA submission in Q1 2026 if initial data demonstrates positive results.

While its recent quarterly report showed a modest earnings and revenue miss, with a loss per share of $0.38 on $14.5 million in revenue, Ocular Therapeutics remains well-capitalized with approximately $790 million in cash and proceeds from an October equity financing, providing a runway into 2028. Analysts are highly bullish, with all 10 current ratings as strong buys and an average price target of $24, implying 82% upside. Regulatory strategy aligns closely with FDA requirements, potentially allowing a streamlined approval process through a single registrational trial. If XPaxley demonstrates around 15% improvement over its comparator, the drug could secure FDA approval with a superiority claim.

Ocular Therapeutics offers a compelling investment opportunity, combining a deep cash position, innovative technology, and strong regulatory alignment, positioning it for significant upside as its pipeline advances.

Previously we covered a bullish thesis on AbbVie Inc. (ABBV) by Magnus Ofstad in May 2025, which highlighted strong Q1 performance, immunology momentum with Skyrizi and Rinvoq, Elahere’s MIRASOL trial success, and strategic acquisitions. The company's stock price has appreciated approximately by 11.22% since our coverage. This is because AbbVie executed on its growth catalysts. Ocular Therapeutix, Inc. (OCUL) shares a similar focus on innovative therapies and emphasizes its Elotex hydrogel technology and accelerated FDA strategy for XPaxley.

Ocular Therapeutix, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held OCUL at the end of the third quarter which was 27 in the previous quarter. While we acknowledge the potential of OCUL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.