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Investing.com - Piper Sandler has lowered its price target on Cooper Companies (NASDAQ:COO) to $83.00 from $105.00 while maintaining an Overweight rating on the stock. The company, currently trading at a P/E ratio of 35.7x and showing "GOOD" overall financial health according to InvestingPro analysis, maintains strong fundamentals despite recent challenges.
The price target reduction follows what Piper Sandler described as "another disappointing" quarter for Cooper’s CVI segment, which grew only 2% organically compared to guidance and expectations of 5% growth.
Cooper Companies shares fell 12% in after-hours trading following the results announcement, with the firm’s CVI performance marking its weakest showing since the Great Recession, excluding the 2020 pandemic year.
Piper Sandler noted that Cooper’s CVI franchise has experienced a string of quarterly "misexecution," transforming what had been a "long-standing consistency/relative safety premium" into a "revenue visibility discount."
Despite these concerns, the research firm maintained its Overweight rating, citing the stock’s already depressed valuation, potential value unlocking opportunities, healthy free cash flow outlook, and portfolio management potential.
In other recent news, Cooper Companies reported its third-quarter fiscal 2025 earnings, surpassing earnings per share (EPS) expectations with a reported EPS of $1.10, compared to the forecasted $1.06. The company’s revenue aligned with projections, coming in at $1.06 billion. However, the Contact Lens (CVI) division underperformed, missing Stifel’s estimates and leading to a reduction in CVI revenue guidance for the second consecutive quarter. Stifel responded by lowering its price target for Cooper Companies to $85 from $90, although it maintained a Buy rating on the stock. These developments reflect a mixed performance for Cooper Companies, with strong EPS results but challenges in the CVI division impacting revenue forecasts.
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