Jefferies Cuts Price Targets on Cooper Companies (COO) as Recalls Remain an Open Issue
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Price: $76.73 +1.28%
Rating Summary:
15 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 5 | New: 8
Rating Summary:
15 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 5 | New: 8
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Jefferies is maintaining its Hold rating on shares of Cooper Companies (NYSE: COO) while reducing its price target from $77 to $70.
The company reported solid Q4 results with sales and earnings both topping expectations. The firm notes, consistent CVI share gains drove the top line growth as earnings upside was driven by stronger margins.
Management offered FY12 revenue and non-GAAP EPS guidance of 1.35-1.44 billion and $4.80-$5.00. To go inline with the company's past quarter results and new outlook, Jefferies is raising its FY12 and FY13 EPS estimates from $4.71 and $5.25 to $4.90 and $5.33. The firm also increased its sales estimates for FY12 and FY13 to $1.423 billion and $1.515 billion.
An analyst at Jefferies comments on recalls, "Management took steps to address the recently expanded Avaira recall by stating that the situation has been fully addressed in cooperation with the FDA and that it expects no further extension. While the situation seems contained from a customer loss and P&L standpoint due in part to Avaira Toric being a relatively new line and the Spheric recall being company driven, we note that it is still early in the process. Specific it isn’t fully clear as to what could arise from the upcoming FDA review of COO’s U.K. facility (expected in early ’12) as well any potential share losses should the recall be subsequently extended."
For an analyst ratings summary and ratings history on Cooper Companies click here. For more ratings news on Cooper Companies click here.
Shares of Cooper Companies closed at $58.16 yesterday.
The company reported solid Q4 results with sales and earnings both topping expectations. The firm notes, consistent CVI share gains drove the top line growth as earnings upside was driven by stronger margins.
Management offered FY12 revenue and non-GAAP EPS guidance of 1.35-1.44 billion and $4.80-$5.00. To go inline with the company's past quarter results and new outlook, Jefferies is raising its FY12 and FY13 EPS estimates from $4.71 and $5.25 to $4.90 and $5.33. The firm also increased its sales estimates for FY12 and FY13 to $1.423 billion and $1.515 billion.
An analyst at Jefferies comments on recalls, "Management took steps to address the recently expanded Avaira recall by stating that the situation has been fully addressed in cooperation with the FDA and that it expects no further extension. While the situation seems contained from a customer loss and P&L standpoint due in part to Avaira Toric being a relatively new line and the Spheric recall being company driven, we note that it is still early in the process. Specific it isn’t fully clear as to what could arise from the upcoming FDA review of COO’s U.K. facility (expected in early ’12) as well any potential share losses should the recall be subsequently extended."
For an analyst ratings summary and ratings history on Cooper Companies click here. For more ratings news on Cooper Companies click here.
Shares of Cooper Companies closed at $58.16 yesterday.
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