JPMorgan downgrades Cooper Companies on lowered growth outlook

JPMorgan downgraded Cooper Companies (COO) to Neutral from Overweight with a price target of $76, down from $110. Cooper reported another “mixed update” as better the fiscal Q2 results were overshadowed by a lowered organic sales outlook for both CooperVision and CooperSurgical, the analyst tells investors in a research note. The firm says the contact lens market growth has reverted back to its historical 4%-6% run-rate, with tighter budgeting from distributors, retailers, and even the end consumer. JPMorgan finds it hard to come away from the earnings report feeling positive following “several quarters of mixed execution and a potentially durable slowdown in market trends back to previous levels.” Cooper’s 5%-6% organic growth outlook doesn’t justify a higher multiple, it contends.