J.P. Morgan analyst Robbie Marcus has maintained their neutral stance on COO stock, giving a Hold rating on October 11.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Robbie Marcus’s rating is based on a combination of strategic and market factors influencing Cooper Co. The involvement of activist investor Jana, which has taken a position in Cooper Co., suggests potential strategic changes that could be beneficial, such as the separation of its Contact Lens and Women’s Health businesses. However, there are reservations about the feasibility and strategic rationale of acquiring Bausch & Lomb’s Contact Lens business, given potential regulatory hurdles and market concentration concerns.
Additionally, Cooper Co.’s recent acquisitions in Women’s Health have not significantly improved its return on invested capital, raising questions about capital allocation. The company’s organic sales growth in the Contact Lens segment has decelerated due to increased competition and a maturing product portfolio, which further complicates the outlook. Despite these challenges, the current valuation of Cooper Co. presents an opportunity for a business split, which could potentially unlock value. However, the uncertainties surrounding these strategic moves and market conditions justify a Hold rating at this time.
In another report released on October 11, TR | OpenAI – 4o also downgraded the stock to a Hold with a $75.00 price target.