On Tuesday, Stifel maintained a positive outlook on Glaukos Corporation (NYSE:GKOS), raising its price target to $145 from $130 and reaffirming a Buy rating on the stock. The adjustment follows a survey of iDose-trained surgeons, which revealed that reimbursement for the iDose's new J-code is starting to be received by doctors. The consistency and predictability of this reimbursement are deemed crucial for increasing the use of the product.
The fourth quarter of 2024 is anticipated to be the first significant period for iDose in real-world application. The third quarter financial results are expected to include updated guidance that will reflect iDose trends for the fourth quarter. The firm encourages investment in Glaukos ahead of these upcoming developments.
The survey, which included feedback from 26 surgeons, suggested strong utilization expectations for iDose in 2024 and 2025. Comparison with data from July revealed that the volume has remained steady among the 21 surgeons who participated in both surveys. Additionally, a proprietary tracker indicated a surge in surgeon trainings for iDose during August.
Based on these findings, Stifel has increased its sales forecasts for iDose, raising its 2025 and 2026 revenue estimates from $80 million and $175 million to $100 million and $200 million, respectively. This adjustment also translates to an overall increase in total sales projections for those years.
In other recent news, Glaukos Corporation has reported a significant 19% increase in consolidated net sales for the second quarter, reaching $95.7 million. This robust performance has led the company to revise its full-year 2024 net sales guidance upward to between $370 and $376 million. The growth has been attributed primarily to the success of its US interventional glaucoma franchises, including the iStent portfolio and iDose TR.
Internationally, Glaukos Corporation has achieved record sales in its glaucoma franchise, thanks to infrastructure expansion and regulatory approvals. The company's Corneal Health franchise also contributed significantly, delivering $19.8 million in sales, with Photrexa contributing $16.7 million.
In terms of future developments, Glaukos expects the adoption of iDose TR to grow in future quarters, facilitated by the J-code, which ensures consistent reimbursement. The company also anticipates profitability post-iDose ramp-up, with 2025 being a pivotal year. It is also investing in novel technologies, including Epioxa, and has improved its capital position through a convertible senior notes transaction.
InvestingPro Insights
As Glaukos Corporation (NYSE:GKOS) positions itself for a pivotal period with its iDose product, the company's stock characteristics and financial health are of particular interest to investors. According to InvestingPro data, Glaukos boasts a substantial market capitalization of $7.35 billion. Despite analysts' expectations that the company will not be profitable this year, the revenue growth metrics are promising, with a 15.14% increase over the last twelve months as of Q2 2024, and an even more impressive quarterly growth rate of 19.02%.
The InvestingPro Tips highlight the stock's low price volatility and its high return over the last year, which could be indicative of investor confidence in the company's long-term strategy, including the rollout of iDose. Additionally, Glaukos' liquid assets surpass its short-term obligations, suggesting financial resilience. However, with a negative P/E ratio of -41.32 and a price/book ratio of 11.06, the stock is trading at high valuation multiples, which may give some investors pause.
Investors interested in Glaukos' detailed performance metrics and additional InvestingPro Tips, which offer further insights into the company's financial health and stock behavior, can explore them through InvestingPro's platform. There are 15 additional tips available, providing a comprehensive analysis for a well-rounded investment decision.
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