Stifel maintains Buy rating on Glaukos stock ahead of Epioxa PDUFA date

Investing.com - Stifel reiterated its Buy rating and $115.00 price target on Glaukos Corporation (NYSE:GKOS), a $4.8 billion medical technology company currently trading above its InvestingPro Fair Value, as it approaches the October 20 PDUFA date for its Epioxa drug. The company has maintained impressive revenue growth of 26.7% over the last twelve months, despite not yet achieving profitability.

The investment firm surveyed 27 corneal cross-linking (CXL) ophthalmologists and reported that Epioxa adoption and volume expectations appear robust. The survey results support Stifel’s view that the drug will accelerate market growth and quickly capture the majority of CXL procedure volume. With a healthy gross profit margin of 76.3% and strong liquidity position (current ratio of 5.51), Glaukos appears well-positioned to support this expansion. (InvestingPro subscribers can access 6 additional key tips about GKOS’s financial health.)

Stifel’s research also indicates minimal CXL patient warehousing ahead of Epioxa’s launch, countering a potential headwind previously identified by Glaukos management. This finding has increased the firm’s upside bias toward second-half 2025 and 2026 Corneal Health revenue.

The firm’s comprehensive U.S. Photrexa/Epioxa sales model suggests Epioxa can become an important growth driver for Glaukos in 2027 and beyond, potentially contributing 2-3+ percentage points from total Corneal Health. Stifel’s 2027 upside case projects over 50% year-over-year growth, driving 6-7 percentage points of Corneal Health growth contribution.

Stifel believes the upcoming PDUFA could serve as a positive catalyst for Glaukos shares, noting that Epioxa’s Phase 3 data support approval and the drug’s differentiation suggests potential upside to the firm’s $6,000 average selling price estimate. Analyst targets range from $72 to $165, with a consensus recommendation of Buy. For deeper insights into GKOS’s growth potential and financial health, access the comprehensive Pro Research Report available exclusively on InvestingPro.

In other recent news, Glaukos Corporation reported quarterly results that exceeded expectations, with a $9 million revenue beat and earnings per share coming in $0.02 above estimates. This positive performance was largely attributed to $31 million in U.S. iDose sales, which helped counterbalance impacts to other segments from reimbursement changes. Meanwhile, Mizuho adjusted its price target for Glaukos to $130 from $150, maintaining an Outperform rating despite a mixed outlook. In another development, Glaukos broke ground on an $80 million research, development, and manufacturing facility in Huntsville, Alabama, expected to create over 150 full-time jobs.

Analyst sentiment on Glaukos remains varied, with Stifel maintaining a Buy rating and adding the company to its Select List, citing a solid outlook for the iDose product. Piper Sandler also reiterated an Overweight rating with a $165 price target, noting the company’s transition from Photrexa to Epioxa in its corneal health franchise. Goldman Sachs initiated coverage with a Buy rating, highlighting Glaukos’s strategic shift to a hybrid device and ophthalmic pharmaceutical company. These developments reflect ongoing interest and varied perspectives from analysts regarding Glaukos’s future prospects.

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