Why Now Is The Time To Buy The Cooper Companies: Analyst Highlights Optometry And Women's Health Growth

Mizuho analyst Anthony Petrone reiterated a Buy rating on The Cooper Companies, Inc. COO with a price target of $440.

The company is set to report quarterly results on Wednesday, August 30, after the market closes.

With shares off from recent highs and the company well positioned to benefit from resurgent optometry and women's health volumes, Petrone sees current levels as an attractive entry point. 

For the quarter to be reported, the analyst's estimates for revenue/EPS at $896.1 million/$3.34. 

With COO seeing momentum in MyDay (SiHY dailies) and strong uptake in Biofinity torics offset by a breather in patient volumes, the analyst sees CVI coming in at the lower end of the +8-10% guidance range.

The quarter to be reported will reflect a more competitive quarter with slowing patient volume momentum in contact lenses and a continued rebound in CSI office & surgical.

COO's CooperSurgical (CSI) business represents ~one-third of overall COO revenue, and with the majority of CSI exposed to obstetrics, the analyst forecasts segment growth.

Petrone also sees results as bullish for the performance of COO's Generate Life Sciences acquisition.

Additionally, Women's Health volumes continue its resurgence. 

Despite the relatively modest pullback from recent highs, the analyst views valuation compelling at ~21.0x on a forward EV/EBITDA basis compared to the stock's 23.0x forward EV/EBITDA five-year average forward multiple.

Price Action: COO shares are trading higher by 0.34% to $$372.66 on the last check Monday.