Stifel cuts Glaukos stock target to $140, maintains buy rating

On Wednesday, Stifel analysts revised their price target for Glaukos Corporation (NYSE:GKOS) shares, reducing it to $140 from the previous target of $175, while continuing to endorse the stock with a Buy rating. The company, currently trading at $91.57 with a market capitalization of $5.2 billion, has seen its stock price decline significantly over the past three months, according to InvestingPro data. The adjustment follows a survey of 34 iDose surgeons, revealing that the first quarter of 2025 (1Q25) iDose procedure volumes did not increase from the previous quarter, which tempered expectations for a substantial earnings beat.

The surveyed surgeons indicated that the volume of iDose procedures performed in the first quarter was flat compared to the fourth quarter of 2024. This led Stifel analysts to moderate their initial optimism for a significant beat in 1Q25 iDose sales. The analysts noted that their projected revenue range of $23 million to $24 million for 1Q25 represents a conservative estimate that would likely be the minimum required for the company’s shares to find support in the market.

Despite the flat growth in the first quarter, the survey revealed that surgeons anticipate a sharp increase in iDose procedure volumes for the second quarter of 2025 (2Q25), expecting a 61% rise from the previous quarter. Stifel analysts maintain a positive outlook, suggesting that the "wow" quarter for iDose could still occur in 2Q25.

The research highlighted that reimbursement issues are the primary obstacle to broader adoption of the iDose technology. However, few surgeons reported non-financial challenges affecting utilization. Despite these challenges, InvestingPro data shows the company maintains strong fundamentals with a healthy current ratio of 5.99 and impressive revenue growth of 21.85% in the last twelve months, while maintaining a robust gross margin of 75.48%. Stifel analysts pointed out particularly strong trends among surgeons working with Noridian, where reimbursement policies are most developed, as a positive indicator for future volume growth as other Medicare Administrative Contractors (MACs) align their reimbursement practices.

In conclusion, Stifel remains confident in the long-term prospects of Glaukos and its iDose technology. While analysts find the current valuation attractive, InvestingPro’s Fair Value analysis suggests the stock may be overvalued at current levels. Investors seeking deeper insights can access additional ProTips and comprehensive analysis through InvestingPro’s detailed research report, which is part of their coverage of over 1,400 US stocks.

In other recent news, Glaukos Corporation reported its fourth-quarter revenue for fiscal year 2024 at $105.5 million, marking a 28.1% year-over-year increase. This performance slightly exceeded BTIG’s and consensus estimates, despite challenges in Corneal Health revenue. The company has provided a fiscal year 2025 guidance range of $475 million to $485 million, aligning with street expectations. Meanwhile, Piper Sandler reduced its price target for Glaukos to $165 from $180 but maintained an Overweight rating, citing potential growth from the iDose product in the future. Stifel and Truist Securities both maintained their Buy ratings on Glaukos, with price targets of $175 and $185, respectively, emphasizing the long-term potential of iDose. Truist highlighted a significant quarter-over-quarter revenue increase for iDose, projecting further growth in the coming years. Additionally, the FDA has set a review date for Glaukos’ keratoconus drug Epioxa for October 2025, which could expand the company’s product offerings. BTIG adjusted its price target slightly to $155, maintaining a Buy rating, and noted that iDose is expected to play a larger role in Glaukos’ growth strategy.

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