Buy Rating Affirmed for Cooper Companies Amid Strong Growth Prospects and Positive Industry Trends

Analyst Larry Biegelsen of Wells Fargo maintained a Buy rating on Cooper Co (COO – Research Report), retaining the price target of $110.00.

Larry Biegelsen has given his Buy rating due to a combination of factors that indicate a robust outlook for The Cooper Companies, Inc. (COO). Biegelsen anticipates that the company’s second fiscal quarter (FQ2) results will at least meet market expectations, with potential for an outperformance in the contact lens division (CVI). He also infers that the company’s full-year 2024 guidance might be raised due to the accelerated ramp-up in MyDay manufacturing, better-than-expected performance of Cook acquired assets, and strong growth in the in vitro fertilization (IVF) sector. These positive indicators, despite a slight headwind from foreign exchange rates, underpin his optimistic stance on the company’s stock.

Furthermore, Biegelsen draws confidence from industry trends, noting that competitor reports in the contact lens market are encouraging and suggest that COO is likely to continue its trend of growing faster than the market, especially given its performance relative to competitors like Alcon (ALC). He also notes the potential for CooperSurgical (CSI) to take market share in the IVF segment, bolstering the company’s growth prospects. Although there is a slight increase in foreign exchange headwinds projected for FY24, Biegelsen believes that the company’s focus on improving operational leverage and earnings per share (EPS) execution will allow it to absorb these impacts effectively, reinforcing his Buy recommendation for COO’s stock.

Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of COO in relation to earlier this year.

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Cooper Co (COO) Company Description:

The Cooper Cos, Inc. operates as a medical device company. It operates through the following business units: Cooper Vision and Cooper Surgical. The Cooper Vision business unit brings a refreshing perspective on vision care with a commitment to crafting quality lenses for contact lens wearers. The Cooper Surgical business unit focuses on supplying women’s health clinicians with market medical products and treatment options to improve the delivery of healthcare to women. The company was founded in 1958 and is headquartered in San Ramon, CA.