Cooper Companies maintains stock target with Overweight rating post 3Q results

On Thursday, Piper Sandler confirmed its positive stance on shares of Cooper Companies (NASDAQ:COO), maintaining an Overweight rating and a price target of $120.00. The affirmation follows Cooper Companies’ release of its fiscal third quarter results, which showcased a revenue increase to $1,003 million, marking an 8% organic growth and slightly exceeding the anticipated $997 million.

The company’s performance was particularly bolstered by stronger margins, which improved by 160 basis points year-over-year and have seen a year-to-date increase of 120 basis points.

The adjusted earnings per share (EPS) for the quarter also surpassed expectations, coming in at $0.96, which was $0.05 higher than the consensus. This financial quarter marks the third consecutive time Cooper Companies has raised its full-year 2024 guidance, attributed to operational strength and favorable foreign exchange tailwinds that emerged in recent weeks.

Looking ahead, the company’s management has provided preliminary insights into its fiscal year 2025, indicating expectations for double-digit constant currency operating income growth. This outlook aligns with previous projections and suggests that analyst estimates may rise following the increased guidance for fiscal year 2024.

Piper Sandler’s reiteration of the Overweight rating and price target reflects confidence in Cooper Companies’ continued execution momentum, which is anticipated to extend into the next fiscal year. The analyst’s commentary underscores the company’s consistent ability to outperform and raise guidance, reinforcing a positive outlook for its financial performance moving forward.

In other recent news, Cooper Companies reported a 14% year-over-year increase in earnings per share and a 10% rise in organic CVI growth for its fiscal third quarter. The company’s revenues reached $943 million in the second quarter of 2024, marking an 8% organic increase, bolstered by strategic moves, particularly in mergers and acquisitions within its Women’s Health franchise.

Analysts from Baird have increased the price target for Cooper Companies to $125, noting the potential for double-digit EPS growth to continue into fiscal year 2025.

Other analysts have also provided their assessments. Jefferies upgraded Cooper Companies’ stock to ‘Buy’, citing the company’s strong growth prospects. However, Citi maintained a neutral stance, lowering its price target for Cooper Companies to $1.40 from $1.80.

In addition, Albert G. White III, the current President and CEO of The Cooper Companies, has joined the Board of Directors at Evolus (NASDAQ:), Inc. KeyBanc maintained its Sector Weight rating for Cooper Companies, citing the potential impact of new competition from Sebela Pharmaceuticals on Cooper’s Paragard product. These are recent developments that highlight the evolving dynamics in the healthcare sector and the strategic positioning of Cooper Companies within this context.

InvestingPro Insights

As Cooper Companies (NASDAQ:COO) continues to demonstrate financial resilience and growth, key metrics from InvestingPro underscore the company’s market position. With a market capitalization of $18.82 billion, Cooper Companies is trading at a P/E ratio of 55.33, which indicates a premium valuation in the market. This high earnings multiple is further reflected in the adjusted P/E ratio of 55.38 over the last twelve months as of Q2 2024.

InvestingPro Tips suggest that Cooper Companies is expected to grow its net income this year, supporting the optimistic outlook shared by Piper Sandler. Moreover, the company has a record of maintaining dividend payments for 25 consecutive years, which may appeal to income-focused investors. The company’s stock generally trades with low price volatility, which could be a reassuring factor for investors looking for stability in their portfolio.

For those interested in further insights, InvestingPro offers additional tips on Cooper Companies, which can be accessed through their platform.

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