In a report released yesterday, Young Li from Jefferies reiterated a Buy rating on Cooper Co (COO – Research Report), with a price target of $105.00.
Young Li has given his Buy rating due to a combination of factors including Cooper Co’s strategic positioning and market dynamics. Despite a challenging start to the fiscal year and macroeconomic uncertainties, the company is expected to benefit from increased supply in the second half, which should help meet its guidance. The valuation gap between Cooper Co and its competitor ALC has widened significantly, presenting a discount that more than accounts for the associated risks, making it an attractive investment opportunity.
Moreover, Cooper Co’s focus on high-margin products and its ability to manage supply constraints are seen as positive indicators for future growth. The contact lens market’s resilience during economic downturns, as evidenced during the Global Financial Crisis, further supports the Buy rating. Even though there are some short-term slowdowns, the long-term outlook remains positive with expected capacity expansions and product availability improvements, which should drive growth in the coming years.
According to TipRanks, Li is an analyst with an average return of -25.8% and a 19.35% success rate. Li covers the Healthcare sector, focusing on stocks such as RxSight, Accuray, and Cooper Co.
In another report released on March 31, Piper Sandler also maintained a Buy rating on the stock with a $115.00 price target.