Market Overview

Baird Says Buy Cooper Companies At Current Levels

Share:

Cooper Companies Inc (NYSE: COO) hosted investor meetings this week. Following meetings with management, Baird’s Jeff D. Johnson maintained an Outperform rating for the company, with a price target of $185.

Analyst Jeff Johnson commented that the investor meetings increased confidence in “the sustainability of recent above-market contact lens revenue growth and potential for solid double-digit EPS growth over the next several years.”

New Product Perspective

Cooper Companies’ new product pipeline appears to be good and more robust than that of any of its competitors, Johnson noted.

Margin perspective

Gross margins across all four of Cooper Companies’ key product lines, namely clariti, MyDay, Biofinity and Avaira, seem to have significant expansion opportunity over the next few years. “In our view, such GM% improvements should be more than enough to help COO’s company-wide OM% expand at least 100bp annually over the next few years,” the analyst wrote.

Looming Vita Monthly SiHy Launch

Johnson & Johnson (NYSE: JNJ) is preparing to launch of its Vita monthly SiHy next week, which has led to investors focusing more on near-term risks Cooper Companies.

“But we continue to believe risk of near-term disruption to COO from JNJ’s Vita launch next week is smaller than what we saw late last year with the OASYS 1-Day launch, and as such we continue to like risk/reward with this stock and remain buyers at current levels,” Johnson added.

Latest Ratings for COO

DateFirmActionFromTo
Sep 2020Raymond JamesMaintainsOutperform
Sep 2020Stephens & Co.MaintainsOverweight
Sep 2020OppenheimerMaintainsPerform

View More Analyst Ratings for COO
View the Latest Analyst Ratings

 

Related Articles (COO)

View Comments and Join the Discussion!

Posted-In: Baird Jeff D. JohnsonAnalyst Color Long Ideas Reiteration Analyst Ratings Trading Ideas

Latest Ratings

StockFirmActionPT
PLTHCanaccord GenuityMaintains6.0
VLDRCraig-HallumInitiates Coverage On23.0
MFACNorthland Capital MarketsInitiates Coverage On15.0
CEREJefferiesInitiates Coverage On18.0
GIIIUBSInitiates Coverage On22.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com