Truist maintains buy on Glaukos stock, price target steady at $185

On Friday, Truist Securities expressed continued confidence in Glaukos Corporation (NYSE:GKOS), maintaining a Buy rating and a price target of $185.00. The stock has shown remarkable strength, delivering a 69.5% return over the past year and trading near its 52-week high of $163.71. According to InvestingPro data, analyst targets range from $120 to $200. The firm’s analyst emphasized the potential of Glaukos’ iDose product, which reported a significant quarter-over-quarter increase in revenue, doubling from $13 million to $16 million. This growth supports the company’s revenue acceleration thesis, projecting an increase of over 30%.

The analyst noted that while core iStent revenue faced headwinds in the fourth quarter, limiting revenue upside, the robust performance of iDose has kept the company’s growth trajectory on track for 2025. The company maintains strong financial health with a current ratio of 5.99 and operates with moderate debt levels. Despite the company’s high valuation potentially reducing tolerance for less-than-ideal news, the focus remains on iDose. InvestingPro analysis reveals 8 additional key insights about Glaukos’s financial position. The analyst’s research instills confidence in the product’s potential for considerable upside in revenue and profit estimates from 2025 to 2027 and beyond.

For 2025, the guidance for iDose revenue is estimated to be around $119 million at the midpoint, which surpasses the consensus of over $100 million and is viewed as potentially conservative. With a market capitalization of $8.7 billion and revenue growth of 21.85% in the last twelve months, Truist Securities suggests that the current dip in Glaukos’ stock price, which fell 13% post-market, presents a buying opportunity. The firm believes Glaukos possesses one of the most promising future revenue and profit growth profiles within their coverage, with the ramp-up of iDose just beginning. For a comprehensive analysis of Glaukos’s valuation and growth prospects, access the detailed Pro Research Report available exclusively on InvestingPro.

In other recent news, Glaukos Corporation reported its fourth-quarter 2024 earnings, showcasing a revenue of $105.5 million, which exceeded analyst forecasts of $100.53 million and marked a 28% year-over-year increase. However, the company’s earnings per share (EPS) fell short of expectations, reporting -$0.40 compared to the anticipated -$0.38. Despite this, Glaukos ended the year with no debt and $324 million in cash and equivalents. Looking ahead, the company provided a fiscal year 2025 revenue guidance range of $475 million to $485 million, indicating a 24% to 26% growth.

BTIG analyst Ryan Zimmerman adjusted the price target for Glaukos shares from $157 to $155, maintaining a Buy rating, following the company’s financial performance. The analyst highlighted that Glaukos’ glaucoma revenue saw a significant increase, reaching $84.1 million, partly due to contributions from iDose products. However, the Corneal Health segment fell short of expectations, reporting $21.4 million, a slight decline from the previous year.

Glaukos is also facing challenges, such as pressure on U.S. legacy glaucoma products and foreign exchange impacts on international revenue. Despite these hurdles, the company anticipates iDose will play a larger role in supporting growth, with projected revenue for iDose in fiscal year 2025 increased to $117 million. The company also announced plans for a new facility and several product innovations, including the anticipated launch of the iDose Trio in 2026.

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