According to TheFly, Baird flagged the company’s increasingly challenging margin leverage heading into fiscal 2027, saying it limits COO stock's near-term appeal
- Piper Sandler cut COO to Neutral from Overweight and slashed its target to $59 from $86.
- Baird said Cooper's margin leverage "looks increasingly challenging" for fiscal 2027, limiting the stock's near-term appeal.
- Q3 revenue of $1.067 billion missed the FiscalAI consensus by about 2.9%, while adjusted EPS of $1.15 beat the estimate by 2.7%.
Cooper Companies Inc. (COO) stock fell over 15% in Thursday's premarket and was on track to hit a fresh 52-week low after two analysts downgraded the medical-device maker following its fiscal third-quarter report.
COO stock is on track to post its biggest single-day fall since May 2025.
CooperVision Weighs On Revenue
Cooper reported Q3 net sales of $1.067 billion, up about 1% year over year. FiscalAI consensus data called for approximately $1.0984 billion, implying a roughly $32.2 million, or 2.9%, miss. Meanwhile, the adjusted earnings per share (EPS) of $1.15 beat the $1.12 consensus by about 2.7%.
The main pressure came from CooperVision, where revenue was $717 million and flat year over year. CEO Al White said reductions in U.S. channel inventory weighed on the quarter and will continue to affect Q4. Americas CooperVision revenue fell 2%, while EMEA increased 6%.
Analysts Cut COO Rating And Price Targets
Piper Sandler analyst Jason Bednar downgraded COO stock to 'Neutral' from 'Overweight' and cut his price target to $59 from $86. TheFly cited Bednar as calling CooperVision's performance “another disappointing quarterly result” and noted that the company has reduced guidance four times in the past two years.
The Piper analyst said he could not find a strong fundamental case for buying the weakness.
Baird also moved the stock to 'Neutral' from 'Outperform' and lowered its target to $61 from $85, saying the Q3 report was “disappointing on several fronts.” Cooper's margin leverage "looks increasingly challenging" for fiscal 2027, limiting the stock's near-term appeal, the firm said according to TheFly.
Q4 Guidance Keeps Pressure On
Cooper guided fiscal Q4 revenue to $1.06 billion to $1.08 billion, with CooperVision revenue of $692 million to $706 million and organic growth ranging from a 2% decline to flat. Full-year revenue is expected at $4.23 billion to $4.25 billion, with adjusted EPS between $4.51 and $4.55.
Despite the sales miss, the quarter was stronger for Cooper on cash generation, with free cash flow rising 66% to $273 million. Cooper also repurchased $339.1 million of shares during this period.
What Retail Investors Think About COO Stock?
Retail sentiment on Stocktwits surrounding COO stock turned ‘bullish’ from ‘neutral’ amid ‘high’ message volume.
COO stock has fallen 21.7% so far this year, underperforming the benchmark S&P500, which has risen 11.3% during this period.
See Also: CHWY Stock Heads For Worst Week Since February: Analyst Downgrades On ‘Little Reason To Outperform Market’
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
