Cautious Outlook on Glaukos Amid Growth Opportunities and Market Access Challenges

Larry Biegelsen, an analyst from Wells Fargo, maintained the Hold rating on Glaukos (GKOS – Research Report). The associated price target remains the same with $86.00.

Larry Biegelsen has given his Hold rating due to a combination of factors influencing Glaukos’s current market position. The company is experiencing growth in iDose volume, primarily driven by three Medicare Administrative Contractors (MACs) that cover a significant portion of the Medicare Fee-For-Service population. However, Glaukos still faces challenges in accessing the remaining patient base due to pending pro fee publications from other MACs, which could delay broader market penetration.
Additionally, while there is potential for growth in the combo-cataract market and other low-hanging fruit, the company’s current strategy focuses on standalone cases, which may limit immediate revenue expansion. The management’s confidence in achieving revenue guidance is supported by scheduled procedures and a growing focus on combo-cataract cases, but uncertainties in payer coverage and the timing of pro fee activations present risks. These factors contribute to a cautious outlook, justifying the Hold rating.