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On Monday, Piper Sandler analyst Matt O'Brien increased the price target for Glaukos Corporation (NYSE:GKOS) shares to $180 from the previous target of $140, while maintaining an Overweight rating on the stock. The company's shares have already demonstrated remarkable strength, posting a 73% return over the past year and currently trading near its 52-week high of $163.71. According to InvestingPro analysis, the stock appears overvalued at current levels. The adjustment follows a discussion with a prominent glaucoma surgeon regarding the impact of Glaukos' iDose device on the field of Minimally Invasive Glaucoma Surgeries (MIGS).
The surgeon described iDose as a transformative tool that is likely to make more physicians comfortable with performing interventional glaucoma procedures. This optimism aligns with Glaukos's strong financial position, maintaining a healthy current ratio of 5.54 and operating with moderate debt levels. Currently, he is using iDose primarily for patients with Medicare fee-for-service, with expectations to expand its use to other patient groups starting in April. His practice plans to significantly increase the use of iDose, with an estimated 250 cases to be handled by him alone this year.
Despite the surgeon's enthusiasm, Piper Sandler suggests a conservative approach to the product's market introduction, anticipating a gradual uptake. However, the firm expresses greater confidence in its revenue estimate of $113 million for Glaukos in the current year, bolstered by the surgeon's positive feedback.
The surgeon also shared insights on using various MIGS technologies, noting a slight preference for stents due to their ability to preserve the eye's anatomy. This feedback reinforces Piper Sandler's positive outlook on Glaukos, as reflected in the reiterated Overweight rating and the elevated price target.
In other recent news, Glaukos Corporation has reported sustained efficacy in iDose TR trials, with approximately 70% of subjects maintaining controlled intraocular pressure (IOP) levels. The company also initiated a Phase 2b/3 clinical program for iDose TREX, aiming to enhance the drug capacity of the iDose technology. Glaukos has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for Epioxa, a novel treatment for keratoconus, a progressive eye disease.
Stifel analysts have increased their price target on Glaukos shares to $175, following positive feedback from a survey of iDose-trained surgeons. They anticipate that fourth-quarter 2024 iDose sales will reach at least the mid-teen millions range, significantly outperforming current market expectations. Citi upgraded Glaukos from Neutral to Buy, expecting a positive inflection in sales of its iDose product in 2025, while Mizuho (NYSE:MFG) Securities retained a Neutral rating on Glaukos but increased the price target in anticipation of a significant year ahead for the company.
These are recent developments that investors should note. Piper Sandler analysts expressed optimism for Glaukos, expecting the company to maintain its premium valuation and strong growth profile. These updates highlight the recent financial performance and market expectations for Glaukos Corporation.
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