JaysonPhotography
J.P. Morgan upgraded The Cooper Companies (NASDAQ:COO) to Overweight from Neutral on Wednesday and raised its price target to $120 from $100 per share, citing the MedTech firm's improving outlook amid a favorable macro setup.
Analyst Robbie Marcus highlighted COO's CooperVision (CVI) business focused on contact lens wearers, which generates the lion's share of the company's topline.
"Healthy market trends, pricing power, exposure to high-growth subsegments, and wins in new fits have driven CVI growth in the high single to low double digits, consistently above the market," Marcus wrote.
His price target implies a premium valuation for COO compared to large-cap MedTech stocks. However, Marcus justifies his decision by noting the company's above-average long-term growth prospects, favorable contact lens market trends, and performance in its women's health-focused surgical business.
"With execution improving and underlying end markets attractive, we like the outlook for Cooper," he concluded.
More on The Cooper Companies
- The Cooper Companies, Inc. (COO) Q1 20243 Earnings Call Transcript
- The Cooper Companies: I Still Don't See Much Upside
- Cooper Companies: Women Health Business Makes Room For Growth; Path For Margin Expansion
- The Cooper Companies Non-GAAP EPS of $0.85 beats by $0.07, revenue of $931.6M beats by $14.09M
- The Cooper Companies Q1 2024 Earnings Preview