Market Overview

3 Reasons Why Cooper Companies Landed A KeyBanc Upgrade

3 Reasons Why Cooper Companies Landed A KeyBanc Upgrade
Related COO
10 Biggest Price Target Changes For Friday
26 Stocks Moving In Friday's Pre-Market Session

A bullish case for medical device manufacturer Cooper Companies Inc (NYSE: COO) can now be made for three reasons, according to KeyBanc Capital Markets. 

The Analyst

KeyBanc's Matthew Mishan upgraded Cooper Companies from Sector Weight to Overweight with a new $298 price target.

The Thesis

Investors should have increased confidence in Cooper Companies' ability to grow its business over the coming years — despite a highly competitive environment — for three reasons, Mishan said in the upgrade note. (See the analyst's track record here.) 

  • KeyBanc's proprietary checks suggest an improvement in demand from growth that was below average at the start of 2018 but is now more in-line with peers, particularly in its daily contact lens portfolio, the analyst said. 
  • Cooper's underlying soft contact lens market remains healthy, and the company could account for a 10-20 percent global market share opportunity by 2022 from the higher-priced daily lenses from multiweek or monthly, Mishan said. Over the same time period, the company should be able to sustainably grow its business at a rate of 7 percent or more, above the market average, he said. 
  • Finally, Cooper continues to make necessary investments to support its long-term growth profile, which is notable, as many of its peers don't have readily available capital to keep up with Cooper, the analyst said. For example, the company is investing in improving relationships with eye care professionals and developing less commoditized specialty lenses, extended ranges and new technologies like myopia control.

Price Action

Cooper Companies shares were set to open 0.83 percent higher at $256.09 Monday. 

Related Links:

A Peek Into The Markets: US Stock Futures Flat Ahead Of Pending Home Sales Index

The 10 Most Expensive Stocks In The S&P 500

Latest Ratings for COO

Nov 2018Wells FargoMaintainsOutperformOutperform
Sep 2018Raymond JamesMaintainsOutperformOutperform
Aug 2018BMO CapitalMaintainsOutperformOutperform

View More Analyst Ratings for COO
View the Latest Analyst Ratings

Posted-In: Contact Lenses Eye careAnalyst Color Upgrades Health Care Price Target Analyst Ratings General Best of Benzinga


Related Articles (COO)

View Comments and Join the Discussion!

Latest Ratings

XECImperial CapitalDowngrades35.0
SSTIImperial CapitalUpgrades49.0
AVDLoop CapitalUpgrades29.0
FCREYDeutsche BankUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

BoA Upgrades AT&T: 'The Landscape Has Dramatically Changed'

MGM Resorts Creates Sports Betting, Interactive Gaming Platform