Jefferies analyst Michael Sarcone upgraded the rating on Glaukos (GKOS – Research Report) to a Buy today, setting a price target of $125.00.
Michael Sarcone’s rating is based on a variety of positive indicators surrounding Glaukos’s growth prospects, particularly around the iDose product. His optimism stems from a proprietary survey indicating strong expectations from doctors regarding the volume and use of iDose. The anticipated near-term sales growth inflection for iDose, combined with the sustained performance of Glaukos’s core glaucoma and corneal health franchises, underpins the upgrade to a Buy rating. Furthermore, the survey results suggest a robust outlook for both the volume growth of Minimally Invasive Glaucoma Surgeries (MIGS) and market share for the iStent device. Sarcone’s valuation is bolstered by a conservative yet promising Discounted Cash Flow (DCF) analysis, which notably does not factor in the potential of Glaukos’s extensive pipeline of assets.
The upgrade is also supported by the forecasted acceleration in sales growth for 2025 and 2026, reflecting confidence in the uptake of iDose as well as the stable performance of the base glaucoma and corneal health businesses. Physicians surveyed projected a significant increase in iDose procedures, with sales expectations surpassing consensus estimates. Sarcone’s projections are deemed conservative and take into account a lower training and procedure rate among doctors compared to previous product launches, suggesting additional upside potential. Furthermore, the report mentions upcoming catalysts that could further drive the stock’s performance, including progress with iDose reimbursement and a clearer picture of its potential contribution by the end of 2024. The $125 price target reflects a premium valuation justified by superior growth and margin expectations relative to peers.
In another report released on May 2, Needham also reiterated a Buy rating on the stock with a $113.00 price target.
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Glaukos (GKOS) Company Description:
Glaukos Corp. is an ophthalmic medical device company, which engages in the development and commercialization of surgical devices and sustained pharmaceutical therapies designed to treat glaucoma. Its Micro Invasive Glaucoma Surgery procedures are designed to reduce intraocular eye pressure by improving aqueous outflow through the natural physiologic pathway. The company was founded by Olav B. Bergheim, Morteza Gharib, and Richard Hill on July 14, 1998 and is headquartered in San Clemente, CA.
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