Cooper Companies upgraded to Buy from Hold at Needham

Needham analyst David Saxon upgraded Cooper Companies (COO) to Buy from Hold with a $94 price target after meeting with management. The firm believes a “dislocation” between the company’s valuation and fundamentals has created an attractive entry point into the shares. Contact lens market growth is tracking in the mid- to upper-end of Cooper’s assumed range, the analyst tells investors in a research note. Needham says Cooper has seen premium lenses outperform, which suggests consumers are only adjusting order patterns and not trading down. It thinks the stock’s valuation “is baking in a bear case scenario,” resulting in a favorable risk/reward.