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On Thursday, JPMorgan analyst Allen Gong revised the price target for Glaukos Corporation (NYSE:GKOS) shares, reducing it to $100 from the previous $160, while maintaining an Overweight rating on the stock. According to InvestingPro data, the stock has seen a significant price decline over the past six months, dropping more than 28%, though analyst targets still suggest potential upside with a consensus high target of $191. Gong’s assessment followed the company’s first-quarter 2025 financial report, which he described as a "mixed bag." Although Glaukos’ overall revenues surpassed the conservative expectations of Wall Street, with InvestingPro data showing impressive year-over-year revenue growth of 21.85%, the iDose sales figure of approximately $21 million did not meet investor anticipations. The company maintains strong financial health with a current ratio of 5.99, indicating solid liquidity to support its growth initiatives. This discrepancy is expected to be the focal point of discussions post-earnings release, as it indicates a slowdown in growth shortly after the product’s launch.
Gong noted that seasonal trends might partly explain the deceleration, but he emphasized that the slower rate of Medicare Administrative Contractor (MAC) coverage wins is a more significant barrier to adoption. Despite more efficient J-Code adjudication processes at most MACs, Gong pointed out that the majority of current iDose volumes are driven by the few MACs that have updated their professional fee schedules to include the 0660T code.
The analyst acknowledged the frustration among investors who had anticipated a more consistent increase in iDose adoption, leading to a sharp uptick in growth later in the year. However, Gong remains optimistic about the product’s future, citing robust adoption in areas where MACs provide full coverage. This, he believes, offers a positive outlook for future growth, suggesting that it’s a matter of time before iDose sales begin to significantly rise. With a market capitalization of $5.4 billion and moderate debt levels, InvestingPro analysis reveals 7 additional key insights about Glaukos’s growth potential and financial position in their comprehensive Pro Research Report, available exclusively to subscribers.
In other recent news, Glaukos Corporation reported notable financial results for the first quarter of 2025, with earnings per share (EPS) of -0.22, surpassing the forecasted -0.35. The company also achieved consolidated net sales of $106.7 million, marking a 25% increase year-over-year. The U.S. glaucoma franchise contributed significantly with record net sales of $59.1 million, a 41% rise from the previous year. Despite these positive outcomes, Glaukos’ stock experienced a decline of 7.69% in aftermarket trading. The company reaffirmed its full-year net sales guidance of $475-$485 million, indicating confidence in sustained growth. Glaukos continues to focus on product innovation and expanding its market access, with ongoing FDA reviews and new product launches. Potential regulatory challenges, such as LCD restrictions on stent procedures, remain a concern for the company. Analyst firms like Stifel and BTIG have shown interest in Glaukos’ strategic initiatives and market developments.
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