Jefferies Raises Price Target on Cooper Companies (COO), No Stopping Strong Revenue Growth

Jefferies is raising its price target on shares of Cooper Companies (NYSE: COO) from $66 to $77 following its third quarter results, but is reaffirming its Hold rating due to the valuation.

The company's lens business experienced a 11 percent growth during the quarter, well above the 4-6 percent growth that that market is currently growing at. COO's EPS for the third quarter topped Jefferies estimate by $0.15. The firm reports that the company's growth does not look to slow and that its revenue growth looks to stay consistent "for several more quarters at least."

Management highlighted that margin expansion in the near term will be tempered due to continued investments. COO believes that their vision sales segment is underpowered and will continue to invest in it as the opportunity presents itself.

The firm is increasing its 2011 EPS and revenue estimates from $3.90 and $1.28 billion to $4.19 and $1.327 billion. For 2012, Jefferies is forecasting EPS of $4.71 with $1.444 billion in revenue, up from $4.35 in EPS and $1.366 billion in revenue.

For more ratings news on Cooper Companies click here and for the rating history of Cooper Companies click here.

Shares of Cooper Companies closed at $75.27 yesterday.

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