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Based in San Ramon, California, The Cooper Companies, Inc. (COO) is a global leader in medical devices. Valued at a market cap of $20.6 billion, the company specializes in contact lenses and surgical products, making significant contributions to eye care and women’s health on a global scale.
Shares of the leading medical instrument maker have underperformed the broader market considerably over the past year. The stock has gained 23.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.8%. Also, in 2024, COO is up 9.3%, compared to the SPX’s 25.8% rise on a YTD basis.
Narrowing the focus, the COO's has also struggled to keep up with the SPDR S&P Health Care Equipment ETF (XHE). The exchange-traded fund has gained 25% over the past year and 11.3% on a YTD basis.
Cooper Companies’ stock jumped 11.8% after reporting stronger-than-expected Q3 earnings on August 28. The company achieved a solid 7.8% year-over-year increase in net sales, reaching $1 billion. The company also raised its full-year guidance further fueled investor optimism.
For the current fiscal year, which ended in October, analysts expect COO’s EPS to grow 14.1% year over year to $3.65 on a diluted basis. The company's earnings surprise history is solid as it beat or matched the consensus estimate in all four quarters.
Among the 15 analysts covering COO stock, the consensus rating is a “Strong Buy.” That’s based on 11 “Strong Buy” ratings and four “Holds.”
This configuration has been fairly stable over the past months.
On Nov. 27, Needham analyst David Saxon reiterated Cooper Companies with a “Hold” rating.
The mean price target of $117.46 represents a 13.6% premium compared to COO’s current price levels. The Street-high price target of $130 suggests an upside potential of 25.7%.
