Global medical device provider The Cooper Companies, Inc. (COO) recently posted mixed results for the fourth quarter. Revenue increased 11.4% year-over-year to $759.1 million, beating estimates by $11 million.
Meanwhile, earnings per share of $3.28 fell short of expectations by $0.10. In the contact lenses and fertility markets, the company continues to gain market share across the globe.
With these developments in mind, let us take a look at the changes in COO’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, COO’s top risk category is Legal & Regulatory, contributing 38% (against a sector average of 20%) to the total 39 risks identified.
In its recent annual report, the company has added one key risk factor under the Legal & Regulatory risk category.
COO acknowledged that there is an increasing spotlight from certain stakeholders on environmental, social, and corporate governance (ESG) issues. Moreover, public interest and legislative pressure associated with ESG practices of public companies continue to increase. (See Insiders’ Hot Stocks on TipRanks)
ESG issues including issues associated with climate change and sustainability, could have a negative impact on the company’s business, financials, and the company’s reputation.
Wall Street’s Take
On December 3, Citigroup analyst Joanne Wuensch reiterated a Hold rating on the stock, but decreased the price target to $425 from $453. The analyst pointed out that COO’s top brass flagged COVID-19 and labor market challenges as headwinds for the company.
Consensus on the Street is a Hold based on 1 Buy and 3 Holds for the stock. The average Cooper Companies price target of $429 implies 7.36% potential upside for the stock. That’s after a 16.5% gain in COO’s share price over the past year.
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