Cautious Outlook for Glaukos Amid Regulatory Uncertainty and Valuation Concerns

In a report released yesterday, Patrick Wood from Morgan Stanley maintained a Sell rating on Glaukos, with a price target of $72.00.

Patrick Wood’s rating is based on a combination of factors that suggest caution in the short term for Glaukos. Despite a strong third-quarter performance, with notable sales from their iDose product, there are concerns about the upcoming Contractor Advisory Committee (CAC) meeting scheduled for November 12. The outcome of this meeting could impact future coverage plans for iDose, and there is uncertainty about how optimistic the market will be regarding this event.
Additionally, while the newly launched Epioxa presents a long-term growth opportunity for Glaukos, its high wholesale acquisition cost of $78,500 may pose challenges in achieving widespread coverage. Furthermore, the high market expectations and reliance on expensive J-code backed procedures create tension around the stock’s valuation. These factors contribute to a more cautious outlook, leading to the Sell rating.

Wood covers the Healthcare sector, focusing on stocks such as GE Healthcare Technologies Inc, Becton Dickinson, and Zimmer Biomet Holdings. According to TipRanks, Wood has an average return of -1.0% and a 54.48% success rate on recommended stocks.