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Investing.com - Stifel has reiterated a Buy rating and $85.00 price target on Cooper Companies (NASDAQ:COO), highlighting the company’s strong position in the contact lens market. According to InvestingPro analysis, the company appears undervalued at current levels, with a market capitalization of $13.78 billion and a perfect Piotroski Score of 9, indicating excellent financial strength.
The research firm noted that extensive physician diligence shows the contact lens market remains defensive and will benefit from a sustainable shift to silicone hydrogel (SiHy) dailies.
Cooper Companies is well-positioned with "one of the strongest SiHy daily portfolios in the market today," according to Stifel’s analysis.
The firm also pointed out that Cooper’s CooperSurgical business segment is a "solid, durable MSD%+ grower," indicating consistent mid-single-digit percentage growth potential.
Looking at longer-term opportunities, Stifel believes Cooper can capitalize on the "very large but vastly under-penetrated pediatric myopia management opportunity" with its MiSight lens and comprehensive myopia management portfolio. While trading at a P/E ratio of 33.97, the company maintains healthy profit margins of 67% and is expected to grow its net income this year.
In other recent news, Cooper Companies has expanded its share repurchase program by $1 billion, bringing the total authorization to $2 billion. This move demonstrates the company’s commitment to returning value to shareholders. In terms of earnings updates, KeyBanc maintained its Sector Weight rating on Cooper Companies following third-quarter results that did not meet expectations. The firm noted a significant downward revision to the company’s FY25 organic growth guidance. Meanwhile, Barclays initiated coverage with an Overweight rating, citing Cooper Companies’ increased manufacturing capacity for its MyDay contact lens line as a growth driver. Conversely, Goldman Sachs started coverage with a Sell rating, despite acknowledging the company’s robust contact lens portfolio and potential for improved free cash flow. Stifel reiterated its Buy rating, maintaining a positive outlook after discussions with company leadership. These developments reflect a range of analyst perspectives on Cooper Companies’ future performance.
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