Glaukos Growth Continues; Cantor Reiterates Overweight Rating, $54 Target

Commenting on the first-quarter results of Glaukos Corp GKOS, Cantor Fitzgerald reiterated its Overweight rating and a 12-month price target of $54. The firm also opined that growth will continue in 2017.

Q1 Print

Analysts Elemer Piros and Justin Kim noted the first quarter marked the 15th consecutive quarter of revenue growth in excess of 40 percent, as sales growth continues to be supported by the training of additional surgeons. Revenues of $36 million beat the analysts' estimate of $34 million, with the pricing increase for 2017 and volume growth driving sales.

The company's international sales accounted for 11 percent of the total sales for the quarter, rising 7 percent year-over-year. The analysts noted the growth was in line with the previous guidance of international sales accounting for 10–12 percent of the total sales in 2017.

Outlook

The firm noted Glaukos remains on track to train about 700 surgeons in 2017. The company raised its initial 2017 sales guidance to $162 million–$167 million from $160 million–$165 million, the firm noted.

In The Pipeline

Cantor Fitzgerald noted the company said it has completed the enrollment for its iDose implant, a travoprost-eluting implant for the treatment of glaucoma. The firm expects top-line data from the Phase II study — a 150-patient, double-blind study to assess two elution rates of travoprost compared with topical timolol at 12 weeks — in the second half of 2017.

The firm also noted that the company expects data from its iStent Inject program in combination with cataract surgery to be available in 2018.

Raising Estimates

The firm raised its 2017 revenue estimate to $166 million from $164 million, citing the strength of first-quarter sales, but maintained its 2018 revenue estimate at $214 million. The firm also adjusted its expenses estimate for 2017.

As such, Cantor Fitzgerald maintains its $54 price target for the shares of the company.

In pre-market trading, the shares of Glaukos were down 6.55 percent at $44.50.

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