Tuesday, Piper Sandler reaffirmed its Overweight rating on Cooper Companies (NASDAQ:COO) stock with a stable price target of $115.00.
The decision follows recent discussions with a major U.S. contact lens distributor, which indicated robust revenue trends characterized by double-digit growth. This growth is attributed to a mix of price increases and volume gains within the industry.
The commentary from Piper Sandler also touched on the competitive landscape, noting that Johnson & Johnson (JNJ (NYSE:JNJ)) is backtracking on a previous decision to reduce the availability of numerous toric lens options. Approximately 18 months ago, this move had inadvertently played to Cooper Companies' advantage.
Although JNJ's reversal could introduce new dynamics to the market, Piper Sandler does not view it as a significant threat to Cooper Companies' market share. This development, however, is something the firm plans to keep an eye on.
Looking ahead, Piper Sandler provided insights into Cooper Companies' fiscal third-quarter results, suggesting that the upcoming report could act as a positive driver for the stock. The firm's analysis suggests that Cooper Companies is positioned as one of the more undervalued entities in the medical technology sector.
The analyst's note concluded with a reinforcement of the Overweight rating and the $115 price target for Cooper Companies, highlighting the potential for the forthcoming financial results to positively influence the company's valuation.
In other recent news, Cooper Companies has been the subject of several significant developments. The firm Jefferies has upgraded Cooper Companies' stock to a 'Buy' rating, citing the company's strong growth prospects.
This comes after a comparative analysis with peer Alcon (NYSE:ALC) revealed a substantial difference in price-to-earnings multiples, suggesting a potential undervaluation of Cooper Companies' stock.
In the financial realm, Cooper Companies reported robust growth with revenues reaching $943 million in the second quarter of 2024, marking an 8% organic increase. This growth has been attributed to strategic moves, particularly in mergers and acquisitions within its Women's Health franchise.
Analysts have also been active in their assessments of the company. While Citi lowered its price target for Cooper Companies to $1.40 from $1.80, maintaining a neutral stance, Baird raised its price target for the company to $118 from $116, maintaining an Outperform rating.
In terms of competition, KeyBanc maintained its Sector Weight rating for Cooper Companies, citing the potential impact of new competition from Sebela Pharmaceuticals on Cooper's Paragard product. Lastly, Albert G. White III, the current President and CEO of The Cooper Companies, has joined the Board of Directors at Evolus (NASDAQ:EOLS), Inc.
InvestingPro Insights
As Piper Sandler maintains an Overweight rating on Cooper Companies (NASDAQ:COO) with a target price of $115, real-time data from InvestingPro provides additional context to the firm's performance and valuation. Cooper Companies is currently trading at a high P/E ratio of 55.5, indicating a premium valuation relative to its immediate earnings potential. Despite this, analysts are optimistic about the company's profitability, with net income expected to grow this year. Furthermore, the company has demonstrated consistency in rewarding shareholders, maintaining dividend payments for 25 consecutive years.
InvestingPro data also shows that Cooper Companies has a market capitalization of $18.96B and has achieved a revenue growth of 8.87% over the last twelve months as of Q2 2024. This growth is supported by a robust gross profit margin of 66.23%. For investors seeking additional insights, there are 7 more InvestingPro Tips available, which provide a deeper dive into Cooper Companies' financial health and market position. These tips can be accessed through the InvestingPro platform and may offer further guidance on whether the stock aligns with individual investment strategies.
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