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Stifel Lowers Price Target for Cooper Companies (COO) to $85 from $90, Maintains Buy Rating
ByAinvest
Thursday, Aug 28, 2025 1:07 pm ET1min read
Stifel has reduced Cooper Companies' (COO) price target to $85 from $90 and maintains a Buy rating despite the company's disappointing revenue guidance revisions for FY25. The company's strong portfolio in the contact lens and women's health markets supports its revenue growth, but there are warning signs such as inefficient capital utilization and insider sell-off activity.
Cooper Companies (COO), a leading global medical device company, reported its third-quarter 2025 results on August 27, 2025, with mixed financial performance. Revenue increased by 6% year-over-year to $1,060.3 million, driven by a 6% rise in CooperVision (CVI) revenue to $718.4 million and a 4% increase in CooperSurgical (CSI) revenue to $341.9 million [1].Despite the revenue growth, GAAP diluted earnings per share (EPS) decreased by 6% to $0.49, while non-GAAP diluted EPS increased by 15% to $1.10. The company attributed the decline in GAAP EPS to a product line exit at CooperSurgical and a 6% reduction in operating margin to 17% compared to 19% in the previous year [1].
Cooper Companies' strong portfolio in contact lenses and women's health markets supported revenue growth. However, the company faced challenges such as inefficient capital utilization and an insider sell-off activity. The company repurchased $52.1 million of common stock during the quarter, but this did not offset the concerns surrounding capital efficiency [1].
Stifel Financial, a leading investment bank, reduced its price target for Cooper Companies from $90 to $85, maintaining a Buy rating despite the company's disappointing revenue guidance revisions for fiscal year 2025. The company expects improving revenue in the fourth quarter and in fiscal year 2026 driven by MyDAY®, a product that has shown promise in the contact lens market [1].
Cooper Companies' management remains confident in its strategy and ability to deliver long-term shareholder value. The company's strong gross margin of 65% and robust free cash flow of $164.6 million reflect its operational excellence and growth strategy [1].
References:
[1] https://www.finanznachrichten.de/nachrichten-2025-08/66292060-coopercompanies-announces-third-quarter-2025-results-399.htm
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