Buy Rating Reaffirmed as Paragard Competitive Headwinds from Miudella Seen as Containable

Needham analyst David Saxon maintained a Buy rating on Cooper Co today and set a price target of $99.00.

David Saxon has given his Buy rating due to a combination of factors related to the competitive outlook and earnings impact. After consulting with OB/GYN physicians about Sebela’s upcoming Miudella product, he concludes that Miudella is likely to capture only a small portion, around 5%, of the procedures currently using Cooper’s Paragard device, at least initially. Even under this competitive scenario, he estimates that the resulting hit to Cooper’s earnings per share in fiscal 2027 would be less than 1 percentage point, which he considers a tolerable level of pressure.

Although he modestly trims his earnings forecasts and price target to reflect this new competitor, Saxon views the Paragard headwinds as containable rather than thesis-changing. In his view, Cooper remains positioned to deliver high single-digit percentage growth in earnings per share despite the incremental competition. This ability to sustain solid EPS expansion, even after incorporating Miudella’s impact, underpins his decision to reaffirm a Buy recommendation on the stock.

In another report released on January 23, Barclays also maintained a Buy rating on the stock with a $98.00 price target.