TSX gains after CPI shows US inflation rose 3%
Investing.com -- Goldman Sachs has updated its healthcare coverage with a focus on medical technology and healthcare IT, flagging both growth opportunities and valuation risks across the sector.
The bank initiated coverage of ophthalmology companies, rating Glaukos a Buy, Bausch + Lomb Neutral, and Cooper Companies Sell. Analysts said ophthalmology represents “one of the largest global market opportunities in MedTech” with more than $60 billion in exposure spanning contact lenses, surgical procedures, and pharmaceuticals.
On Glaukos, Goldman set a $103 price target, citing a “strategic transformation underway as Glaukos transitions from a device to hybrid device/ophthalmic pharmaceutical company.”
The analysts added that their deep dive into the R&D pipeline suggests a $10/share pipeline valuation.
Bausch + Lomb received a Neutral rating with a $16 target, with Goldman noting that while new product launches and margin recovery could support growth, “current valuation reflects improving fundamentals balanced by the company’s elevated leverage profile and low float.”
For Cooper Companies, rated Sell with a $64 target, Goldman pointed to risks around recovery expectations, stating they see “downside risk to consensus organic sales/EPS estimates as we expect the company’s recovery to be more elongated than the market currently expects.”
Beyond ophthalmology, Goldman updated broader MedTech and healthcare IT views, upgrading Beta Bionics to Buy, while downgrading LivaNova to Neutral and Doximity to Sell.
Analysts said they “continue to favor product cycle stocks and those with discrete growth drivers and capital allocation flexibility.”