Needham cuts Glaukos stock price target to $115, maintains Buy

Thursday, Glaukos Corporation (NYSE:GKOS) shares experienced a change in their price target as Needham analysts adjusted the figure to $115 from the previous $176, while reaffirming their Buy rating on the stock. The adjustment followed the company’s first-quarter revenue for 2025 surpassing consensus estimates, and management’s confirmation of its full-year revenue guidance. The analysts noted an increase in the projected contribution from the iDose product by approximately $5 million. According to InvestingPro data, Glaukos has demonstrated strong revenue growth of 21.85% over the last twelve months, with an impressive gross profit margin of 75.48%.

The Needham team observed that while Local Coverage Determinations (LCDs) are impacting Glaukos’ primary iStent product more significantly, the expansion of iDose reimbursement is anticipated to encourage wider usage. The analysts highlighted the ongoing expectation of Glaukos to receive the U.S. Food and Drug Administration’s (FDA) decision on iDose re-treatment by the end of 2025. With a market capitalization of $5.38 billion and operating with moderate debt levels, the company maintains a healthy current ratio of 5.99, indicating strong short-term liquidity.

Despite the positive outlook on the company’s product adoption and revenue guidance, the lower price target reflects a broader market trend of reduced multiples among Glaukos’ peers. This industry-wide adjustment has influenced the valuation and, consequently, the new price target set by Needham. InvestingPro analysis indicates that the stock is currently trading above its calculated Fair Value, with the stock price of $94.25 representing a significant decline from its 52-week high of $163.71. For deeper insights into Glaukos’s valuation and comprehensive financial analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

The analyst, David Saxon, commented on the decision, stating, "GKOS’ 1Q25 revenue beat consensus and, while management reiterated its 2025 revenue guidance, the implied iDose contribution increased by ~$5M. While the LCDs are having a greater impact on GKOS’ core iStent platform, iDose reimbursement continues to expand which should drive further adoption. GKOS continues to expect to hear the FDA’s determination on iDose re-treatment by year-end. We reiterate our Buy rating but lower our price target to $115 (from $176) due to lower peer multiples."

Investors and stakeholders in Glaukos Corporation will be monitoring the company’s progress closely, particularly the anticipated FDA decision, which could be a significant catalyst for the stock.

In other recent news, Glaukos Corporation reported its financial results for the first quarter of 2025, showcasing a robust performance with consolidated net sales of $106.7 million, a 25% increase year-over-year. The company exceeded earnings per share expectations, reporting -0.22 against a forecast of -0.35. Despite these positive results, Glaukos’ stock fell in aftermarket trading, reflecting investor caution about future growth prospects. Glaukos reaffirmed its full-year net sales guidance of $475-$485 million, emphasizing strong sales growth in its U.S. glaucoma franchise, which achieved record net sales of $59.1 million, up 41%.

In a separate development, JPMorgan analyst Allen Gong revised the price target for Glaukos shares, lowering it to $100 from $160, but maintained an Overweight rating. Gong noted that while overall revenues surpassed expectations, iDose sales did not meet investor anticipations, raising concerns about growth slowdown. He attributed this to slower Medicare Administrative Contractor (MAC) coverage wins, though he remains optimistic about future growth in areas with full MAC coverage. The company continues to focus on expanding product innovation and market access, with ongoing FDA reviews and new launches planned.

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