Barclays initiates Cooper Companies stock with Overweight rating

Investing.com - Barclays initiated coverage on Cooper Companies (NASDAQ:COO) with an Overweight rating and a price target of $85.00 on Monday. According to InvestingPro data, the company maintains strong financial health with a perfect Piotroski Score of 9 and a current ratio of 2.12, indicating robust operational efficiency.

The research firm cited Cooper Companies’ expanded manufacturing capacity for its premium MyDay single-use contact lens line, positioning the company to deliver improved growth.

Barclays noted that new private label agreements will partially drive this growth, supporting the company’s future performance in the contact lens market.

The stock is currently trading at more than two standard deviations below its five-year average EV/EBITDA multiple, according to Barclays’ analysis.

The firm expects Cooper Companies’ single-use lens sales to regain momentum in late fiscal first quarter and second quarter, potentially leading to a higher valuation for the stock.

In other recent news, Cooper Companies has expanded its share repurchase program, increasing the total authorization to $2 billion. This move allows the company flexibility, as the program can be suspended or discontinued at any time. On the earnings front, Cooper Companies’ third-quarter results did not meet expectations, prompting KeyBanc to maintain its Sector Weight rating. The firm noted that the revision to Cooper’s fiscal year 2025 organic growth guidance could significantly impact investor sentiment.

Meanwhile, Piper Sandler has adjusted its price target for Cooper Companies to $83, down from $105, while maintaining an Overweight rating. This adjustment follows a disappointing performance in the company’s CVI segment, which grew only 2% organically. In contrast, Stifel reiterated its Buy rating with an $85 price target after discussions with Cooper’s leadership. Additionally, Goldman Sachs initiated coverage on Cooper Companies with a Sell rating and set a price target of $64, highlighting the company’s contact lens portfolio and potential for improved cash flow as positive factors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.