Truist maintains Buy on Glaukos stock with $185 target

On Monday, Truist Securities reiterated a Buy rating on Glaukos Corporation (NYSE:GKOS) with a continued price target of $185.00, well above the current trading price of $153.20. The stock has shown remarkable momentum, delivering a 65.39% return over the past year. Truist's analyst expressed increased confidence in the company's growth prospects, particularly for its iDose product, based on recent survey results. The survey of 50 ophthalmologists indicated that the adoption of iDose could surpass even the most optimistic forecasts for the years 2025 to 2027. According to InvestingPro analysis, the company currently trades above its Fair Value, reflecting high market expectations.

The analyst's commentary highlighted that the current estimates for iDose might be conservative, suggesting potential for revenue growth acceleration and significantly higher earnings per share in the coming years. This optimism builds on the company's strong recent performance, with revenue growing 18.7% in the last twelve months and maintaining an impressive 76.61% gross profit margin. According to the survey data, Glaukos's revenue growth could exceed 30%-40%, with a notable increase in earnings power compared to the central nervous system (CNS) segment.

Glaukos is set to report its fourth-quarter results for 2024 after the market closes on February 20, and the firm is approaching this event with a strong belief in iDose's market adoption and uptake. Truist Securities plans to update its forecasts for the company after the 2025 guidance is provided.

The analyst's remarks underscore the potential for Glaukos to experience robust growth in the medium term, driven by its iDose product. The firm's bullish stance on the stock is supported by the survey data, which suggests that Glaukos could outperform expectations and remain a top pick among small to mid-size investment opportunities. Truist's reaffirmation of the $185 price target reflects this positive outlook.

In other recent news, Glaukos Corporation has been the subject of increased attention from analysts and has reported significant developments in its product pipeline. Piper Sandler recently raised its stock target for Glaukos to $180, maintaining an overweight rating. This followed discussions with a glaucoma surgeon who praised the transformative potential of Glaukos' iDose device. Meanwhile, Stifel analysts increased their price target on Glaukos shares to $175, citing positive feedback from a survey of iDose-trained surgeons.

On the product front, Glaukos has reported sustained efficacy in iDose TR trials, with 70% of subjects maintaining controlled intraocular pressure levels. Additionally, the company has submitted a New Drug Application to the U.S. Food and Drug Administration for Epioxa, a novel treatment for keratoconus, a progressive eye disease. The proposed therapy aims to offer a non-invasive treatment option, reducing procedure times and enhancing patient comfort.

These recent developments underscore the company's commitment to advancing treatments for chronic eye diseases. However, as with all corporate news, the outcomes and impacts of these developments will be determined over time.

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