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The Cooper Companies (COO), headquartered in San Ramon, California, develops, manufactures, and markets contact lens wearers. Valued at $17.7 billion by market cap, the company’s products include contact lenses for the vision care market and diagnostic products, surgical instruments, and accessories for gynecologists and obstetricians.
Shares of this global medical device company have underperformed the broader market over the past year. COO has declined 9.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. In 2025, COO stock is down 3.8%, compared to SPX’s 2.2% rise on a YTD basis.
Narrowing the focus, COO’s underperformance is also apparent compared to the SPDR S&P Health Care Equipment ETF (XHE). The exchange-traded fund has gained about 4.5% over the past year. Moreover, the ETF’s 1.7% gains on a YTD basis outshine the stock’s losses over the same time frame.
COO's underperformance can be attributed to declining sales of PARAGUARD, intensified competition in the birth control market, and softer demand for toric and multifocal lenses. The company's sales growth, driven by the back-to-school season, is expected to decelerate in the first half of fiscal 2025. Additionally, U.S. inventory reductions will likely continue to impact myopia management sales in the upcoming quarter.
On Dec. 5, COO shares closed down more than 1% after reporting its Q4 results. Its adjusted EPS of $1.04 surpassed the analyst estimates by 4%. The company’s revenues of $1 billion, missed analyst estimates marginally.
For fiscal 2025, ending in October, analysts expect COO’s EPS to grow 7.9% to $3.98 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 15 analysts covering COO stock, the consensus is a “Strong Buy.” That’s based on 11 “Strong Buy” ratings, and four “Holds.”
The configuration is consistent over the past three months.
On Jan. 16, Piper Sandler Companies (PIPR) analyst Jason Bednar maintained a “Buy” rating on COO with a price target of $120, implying a potential upside of 35.6% from current levels.
The mean price target of $116.08 represents a 31.2% premium to COO’s current price levels. The Street-high price target of $125 suggests an ambitious upside potential of 41.3%.
