Stifel maintains Buy on Glaukos stock, reiterates $175 target

Published 03/03/2025, 16:06
Stifel maintains Buy on Glaukos stock, reiterates $175 target

On Monday, Stifel analysts maintained a Buy rating on Glaukos Corporation (NYSE:GKOS) with a steady price target of $175.00. According to InvestingPro data, the stock currently trades at $114.77, with analyst targets ranging from $110 to $200, suggesting significant upside potential. Seven analysts have recently revised their earnings expectations upward for the upcoming period. The firm’s confidence in the stock is rooted in the long-term value proposition of Glaukos’ iDose product, a treatment designed for glaucoma patients. The analysts suggest that despite recent challenges post-fourth quarter 2024 results, the stock remains a solid buy for those who believe in the product’s future, see reimbursement hurdles as a temporary issue, and expect these obstacles to diminish over time.

The analysts’ recent meeting with Glaukos management at the American Glaucoma Society (AGS) reinforced their conviction, particularly regarding the second question about reimbursement hurdles being the primary barrier to a more robust ramp-up of iDose. Despite these challenges, the company has demonstrated strong revenue growth of 21.85% over the last twelve months, maintaining a healthy gross profit margin of 75.48%. While acknowledging that the "wow" quarter for iDose sales that investors were hoping for in the first or second quarter of 2025 might not materialize due to the fourth quarter 2024 results, the analysts believe the current share price accurately reflects this and presents an attractive risk-reward balance for medium to long-term investors.

Stifel’s analysis points to a near-term floor of approximately $100 per share, suggesting a level of support for the stock price. The firm’s stance indicates a belief in the eventual overcoming of market barriers and a strong future for iDose, which is key to Glaukos’ growth strategy.

Glaukos Corporation specializes in developing and commercializing products and procedures designed to treat glaucoma, one of the world’s leading causes of blindness. The company’s focus on innovation in this area is a critical part of their value proposition to investors. With a market capitalization of $6.49 billion and a strong liquidity position (current ratio of 5.99), the company operates with moderate debt levels. Get deeper insights into Glaukos’s financial health and growth prospects with a comprehensive Pro Research Report, available exclusively on InvestingPro, along with over 10 additional ProTips and advanced metrics.

The maintained Buy rating and price target announcement come at a time when investors are considering the potential impact of reimbursement challenges on Glaukos’ performance. Stifel’s reaffirmation of their rating and target suggests confidence in the company’s strategy and market position.

In other recent news, Glaukos Corporation reported its Q4 2024 earnings, revealing a revenue of $105.5 million, which exceeded analyst forecasts of $100.53 million. However, the company’s earnings per share (EPS) came in at -$0.40, slightly missing the expected -$0.38. Truist Securities has maintained a Buy rating on Glaukos, with a steady price target of $185, noting the significant revenue growth of the iDose product, which doubled quarter-over-quarter. Meanwhile, BTIG adjusted Glaukos’ price target to $155 from $157, citing strong glaucoma revenue but noting challenges in Corneal Health revenue. Glaukos has provided a fiscal year 2025 guidance range of $475 million to $485 million, reflecting a projected growth of 24% to 26%. The company is also anticipating FDA review for its new drug, Epioxa, for treating keratoconus, with a decision expected by October 2025. Despite some headwinds, Glaukos remains focused on expanding its product offerings and market reach, with plans to launch several innovative products in the coming years.

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