COO - Embedded Expectations Analysis - 2020 06 16
The Cooper Companies, Inc. (COO:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 28.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about MiSight sales growth, pricing pressures, and product launchesSpecifically, management may have concerns about MyDay lens capacity constraints,the ability of the EMEA region to recover, and the sales impact of coronavirus, namely in South Korea. In addition, they may lack confidence in their ability to sustain CooperVision gross margin and MiSight sales growth and mitigate declines in their legacy hydrogel business. Furthermore, they may be concerned about pricing pressures from product rerouting and rebates for new and existing wearers, and they may be exaggerating the growing interest for their other products. Finally, they may lack confidence in their ability to execute their DT1 Toric launch, develop a multifocal product, and meet PARAGARD sales and marketing spend guidance
Cooper Companies is a global medical device company. The company operates through CooperVision and CooperSurgical business units. CooperVision is a manufacturer providing products for contact lens wearers. CooperVision designs its products for astigmatism, presbyopia, myopia, ocular dryness and eye fatigues with a collection of spherical, toric and multifocal contact lenses. CooperVision is engaged in myopia management and specialty eye care markets with products, such as orthokeratology and scleral lenses. CooperSurgical focuses on improving the health of women, babies and families through a portfolio of products and services including medical devices, fertility, diagnostics and contraception.
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