On Friday, Stifel, a financial services firm, maintained its Buy rating on Cooper Companies (NASDAQ:COO) with a price target of $115. The firm's analysis followed Cooper's mixed fourth-quarter results for fiscal year 2024, which showed revenues falling short of expectations while earnings per share (EPS) slightly exceeded forecasts.
According to InvestingPro data, Cooper Companies maintains a market capitalization of $20.56 billion and has demonstrated solid revenue growth of 8.25% over the last twelve months.
Cooper Companies reported a minor revenue shortfall, which analysts attributed to underperformance in its CVI Americas and APAC segments, as well as a slight miss within the Office & Surgical division of its Cooper Surgical Inc. (CSI) business.
Despite this, the company's margins exceeded expectations, which helped drive a $0.05 EPS beat. The majority of this beat, however, came from benefits realized below the operating line.
The management of Cooper Companies provided guidance for fiscal year 2025, projecting 6.0-8.0% organic revenue growth, which aligns with Stifel's adjusted estimate of 6.6%. The EPS forecast of $3.92-4.02 was slightly below Stifel's prediction of $4.03 and the broader market consensus of $4.08.
Nevertheless, Cooper maintained its expectation for a low double-digit percentage increase in adjusted operating income, normalized for foreign exchange impacts.
Stifel's commentary highlighted Cooper's continued market share gains within the contact lens (CL) market, improving leverage, and suggested that a degree of conservatism might be built into the company's fiscal year 2025 guidance. While the firm believes Cooper's valuation is attractive, InvestingPro analysis indicates the stock is currently trading near its Fair Value, with a P/E ratio of 57.18.
The company maintains a "GOOD" Financial Health score, and InvestingPro has identified 8 additional key insights about Cooper Companies' performance and outlook, available in their comprehensive Pro Research Report. The firm has reiterated its Buy rating with a $115 price target.
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