Activist investor Jana Partners has built a new stake in Cooper Companies (COO) and is pressing for changes that could lift the stock. According to a report in The Wall Street Journal, the firm is urging the company to explore strategic moves, including a possible deal between Cooper’s contact-lens business and Bausch + Lomb (BLCO).
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Cooper Companies makes contact lenses through its CooperVision unit and also sells women’s health and fertility products through CooperSurgical. Jana Partners believes the two businesses are too different to work well together and that the company’s spending has not created enough value for investors. Cooper’s shares have dropped more than 20% this year, leaving the California-based firm with a market value of about $14 billion.
A Push for a Possible Deal
Jana Partners wants Cooper Companies to review its structure and consider selling or spinning off one of its units. The investor also wants the company to focus on better capital use and stronger returns. Meanwhile, Bausch + Lomb has already shown interest in a tie-up. Its Chief Executive Officer Brent Saunders said he would be open to combining the contact-lens businesses, calling it a way to build a stronger rival in the market.
Bausch + Lomb has a market capitalization of around $5.3 billion and competes with CooperVision, Johnson & Johnson (JNJ), and Alcon (ALC). Saunders is known for his track record in dealmaking, and Bausch + Lomb itself was spun out of its former parent company to sharpen its focus on eye care. A combination could create a larger player with more scale and better pricing power, though it could also face review by regulators.
Weak Performance and Past Activism
Cooper Companies reported $3.9 billion in total sales in 2024, with about two-thirds coming from CooperVision. However, profits from the women’s health division have been falling due to recent acquisitions that have yet to pay off. The company continues to defend its two-business strategy, saying it serves two growing markets.
Jana Partners has a record of pushing for reviews that lead to major deals. It played similar roles in campaigns at Frontier Communications, Markel, and Lamb Weston. Those moves resulted in sales, board changes, or corporate reviews. Now, with Cooper’s share price under pressure, Jana sees another chance to unlock value through simplification or a merger.
Outlook for Investors
For now, Cooper Companies faces rising calls to prove its strategy can deliver more growth. Jana’s involvement could lead to changes that reshape the business or draw new interest from potential buyers. Investors will be watching for any sign of talks between Cooper and Bausch + Lomb, as well as updates on how management plans to improve performance in both units.
Is COO Stock a Buy?
On the Street, Cooper Companies boasts a Moderate Buy consensus. The average COO stock price target is $79.45, implying a 10.39% upside from the current price.
