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On Friday, Jefferies analyst Young Li revised the price target for Cooper Companies (NASDAQ:COO) shares, reducing it to $110 from the previous $115, while maintaining a "Buy" rating on the stock. The adjustment follows Cooper Companies’ reported first-quarter revenue of $965 million, marking a 4% increase as reported and a 5% increase on a constant currency and organic basis. This figure fell short of the consensus estimate of $978 million. The company, currently valued at $18.16 billion, has maintained strong financial health with a robust current ratio of 1.99, according to InvestingPro data.
The company’s Sphere segment experienced a growth of 3%, which helped to partially offset the stronger performance in the Toric and Multifocal segments, both of which saw a 10% growth. The Sphere segment’s more modest growth is attributed to contact lens supply dynamics. Meanwhile, the Fertility segment faced a challenging quarter-over-quarter comparison due to robust fourth-quarter capital sales. Despite these challenges, Cooper Companies maintains an impressive 67% gross profit margin, demonstrating strong operational efficiency.
Despite the revenue shortfall, Cooper Companies reaffirmed most of its guidance, attributing this decision to improving supply dynamics in the contact lens market and the continued strength of the Fertility market. The analyst reiterated the "Buy" rating for the company’s shares but adjusted the price target downward, reflecting the recent quarterly performance and market conditions.
The updated price target of $110 suggests Jefferies’ confidence in the company’s market position and prospects, despite the slight revenue miss and ongoing challenges in the contact lens and fertility sectors. Cooper Companies’ stock rating remains positive with the expectation of future growth as market conditions evolve.
In other recent news, Cooper Companies reported its first-quarter earnings for 2025, revealing a non-GAAP earnings per share (EPS) of $0.92, which aligned with analysts’ expectations. The company achieved consolidated revenues of $965 million, slightly below the forecast of $979.7 million, but still marking a 4% year-over-year increase. Despite the revenue miss, Cooper Companies adjusted its earnings per share forecast slightly upward at the midpoint, maintaining its guidance for organic growth across its segments. KeyBanc analyst Brett Fishbin reiterated a Sector Weight rating on Cooper Companies, highlighting the company’s focus on debt reduction and investment in its CooperVision segment. The analyst’s comments reflected a view that Cooper Companies is adequately valued relative to its peers. The company has set its FY2025 revenue guidance between $4.08 billion and $4.16 billion, indicating an expected organic growth of 6-8%. Additionally, Cooper Companies plans to expand its MyDay lens market and invest in research and development, with a projected free cash flow of $350 million to $400 million. These developments underscore Cooper Companies’ strategic priorities and financial performance, which are of interest to investors tracking the company’s progress.
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