Stephens cuts Glaukos stock price target to $115 from $140

Friday, Stephens analysts reduced the price target on Glaukos Corporation (NYSE:GKOS) shares to $115, down from $140, while keeping an Overweight rating on the stock. The company, currently valued at $4.77 billion, has seen its stock price decline to $83.54, with InvestingPro analysis indicating the stock is currently overvalued based on its Fair Value model. The adjustment follows the company’s first-quarter results, which surpassed consensus estimates but did not meet investor expectations. Despite maintaining a healthy gross margin of 75.48% and achieving revenue growth of 21.85% over the last twelve months, the company faces challenges. The outperformance was attributed to international glaucoma sales, and while iDose revenues exceeded Wall Street predictions, challenges stemming from the Medicare coverage determinations for minimally invasive glaucoma surgeries (MIGS) impacted U.S. glaucoma sales more than initially expected. InvestingPro subscribers can access 8 additional key insights about Glaukos’s financial health and growth prospects.

Despite the headwinds, Glaukos reaffirmed its full-year guidance, though it indicated a shift in the expected contributions from its various business segments. The company has raised its forecast for international glaucoma and iDose, but anticipates a slowdown in both corneal health and non-iDose U.S. glaucoma compared to initial projections. Following the earnings release, Glaukos shares experienced a drop of more than 10%, contributing to a significant year-to-date decline of 44.28%. The company maintains a strong balance sheet with a current ratio of 5.99 and operates with moderate leverage, showing a debt-to-equity ratio of just 0.14.

The Stephens analyst pointed out that for Glaukos stock to experience a positive re-rating, there would need to be an acceleration in the growth trends of iDose and the domestic performance of iStent. While the price target has been lowered, the Overweight rating aligns with the broader analyst community, which has set price targets ranging from $86 to $191. Get comprehensive analysis and detailed insights about Glaukos and 1,400+ other stocks through InvestingPro’s exclusive Research Reports.

In summary, Glaukos Corporation is navigating through an uncertain macroeconomic environment and specific challenges in the U.S. glaucoma market. The company’s stock valuation reflects a cautious stance from investors, yet Stephens remains optimistic about its long-term prospects, as indicated by the maintained Overweight rating, albeit with a reduced price target to reflect recent developments.

In other recent news, Glaukos Corporation reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of -0.22 compared to the forecasted -0.35. The company achieved consolidated net sales of $106.7 million, marking a 25% increase year-over-year, with significant growth in the U.S. glaucoma franchise. Despite the positive earnings, JPMorgan and Needham both reduced their price targets for Glaukos, with JPMorgan lowering it to $100 and Needham to $115, citing mixed results in iDose sales and broader market trends affecting valuation. Needham maintained a Buy rating, while JPMorgan kept an Overweight rating, noting that the iDose product’s contribution is expected to rise. Analysts highlighted the ongoing challenges in Medicare Administrative Contractor (MAC) coverage as a barrier to iDose adoption, although they remain optimistic about future growth. Glaukos reaffirmed its full-year net sales guidance of $475-$485 million, emphasizing ongoing product innovation and anticipated FDA reviews. The company’s management continues to focus on expanding market access and addressing reimbursement challenges to drive further adoption of its products.

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