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On Friday, Piper Sandler adjusted its outlook on Cooper Companies (NASDAQ:COO) shares, lowering the price target to $105 from the previous $115, while maintaining an Overweight rating on the stock. According to InvestingPro data, analyst targets for Cooper Companies currently range from $84 to $120, with the company maintaining a GOOD overall Financial Health Score. Jason Bednar, an analyst at Piper Sandler, provided insights into the company’s recent financial performance and future expectations.
Cooper Companies reported its second fiscal quarter results, which surpassed consensus expectations in both revenue and earnings per share (EPS). The company experienced a 7% organic growth in its Cooper Vision Inc. (CVI) segment, outperforming the negative predictions that had been circulating. This performance contributes to the company’s solid 6.88% revenue growth over the last twelve months, reaching nearly $4 billion. Despite this positive outcome, the company’s shares were trading lower after-hours due to a more cautious outlook for CVI growth in the second half of the year.
The updated guidance from Cooper Companies presents a mixed picture. While the revenue growth forecast for the second half has been reduced, the EPS guidance has been increased by $0.10 at the midpoint. Bednar noted that the second fiscal quarter results and the EPS increase generally align with Piper Sandler’s predictions made earlier in the week. However, the adjustment in revenue guidance was more conservative than anticipated. Bednar suggested that this conservative stance might be an overreaction given Cooper Companies’ performance in the first half of the year and in comparison to its peers.
Bednar commented on the situation, stating, "Shares are indicated lower after-hours on this more guarded growth outlook for CVI, but we can’t help but feeling the negativity is overdone considering shares will be trading near multi-year valuation lows." He reiterated the Overweight rating and set a new price target of $105. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which offers deep-dive analysis of Cooper Companies among 1,400+ top US stocks.
Investors are now considering the revised expectations from Piper Sandler as they assess Cooper Companies’ stock performance in the context of its recent financial results and the updated guidance for the coming months. The company maintains strong fundamentals with a healthy current ratio of 2.1 and an impressive gross profit margin of 67.2%, according to InvestingPro data.
In other recent news, Cooper Companies reported its second-quarter 2025 financial results, revealing an earnings per share (EPS) of $0.96, which exceeded the forecasted $0.9282. The company also reported revenue of $1,002 million, surpassing the expected $995.95 million. Despite this positive earnings surprise, Cooper Companies’ stock experienced a downgrade from JPMorgan, with the rating lowered from Overweight to Neutral and the price target reduced from $110.00 to $76.00. The downgrade was attributed to a mixed financial update that included a decreased organic sales forecast for its CooperVision and CooperSurgical segments. Needham maintained a Hold rating on the stock, acknowledging the mixed outlook provided by Cooper Companies. The company’s guidance showed a slight increase in reported sales but a downward adjustment in organic revenue growth projections, although EPS guidance was revised upwards due to favorable foreign exchange conditions. Additionally, the company anticipates tariffs to impact next fiscal year’s earnings by approximately 3%.
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