On Thursday, Needham raised its price target for shares of Glaukos Corporation (NYSE:GKOS) to $137.00, up from the previous target of $131.00, while maintaining a Buy rating on the stock. The adjustment follows Glaukos' second-quarter revenue, which surpassed consensus estimates by 8%, primarily due to the performance of its iStent infinite product and the growing contribution of iDose.
Glaukos reported that iDose generated revenue of $4.3 million in the second quarter, equivalent to approximately 305 units. The recent effectiveness of the J-Code on July 1, 2024, is anticipated to foster further adoption of iDose. The rollout of iDose to Glaukos' entire sales force, estimated to be around 65 representatives, is expected to contribute to revenue growth.
The analyst from Needham highlighted that the positive performance in the second quarter is a sign of potential further revenue increases. This optimism is rooted in the continued success of iStent infinite and the expected ramp-up of iDose sales. The reiteration of the Buy rating and the increase in the price target to $137 from $131 reflect confidence in Glaukos' growth trajectory.
The company's strategic efforts, including the full deployment of its sales force to promote iDose, are seen as key drivers for the anticipated uptake in product adoption and subsequent revenue growth.
In other recent news, Glaukos Corporation has been making significant strides in the medical device sector, with several financial firms adjusting their outlook on the company's shares.
Needham raised its price target for Glaukos to $137, reflecting an 8% surpass of consensus estimates in the second-quarter revenue, largely attributed to the performance of the iStent infinite product and the growing contribution of iDose. Truist Securities also increased its price target to $141, based on separate valuations of iDose and Glaukos' other business operations.
Mizuho Securities lifted its price target to $115, anticipating positive developments for iDose, which is currently in the process of securing reimbursement approvals. Stifel raised its price target to $130, citing a positive outlook on Glaukos' product pipeline.
Glaukos has also been actively managing its financial standing, issuing over 4 million common shares in exchange for $230 million in aggregate principal amount of its 2.75% Convertible Senior Notes due 2027.
Additionally, the company announced agreements to repurchase $230 million of its outstanding convertible senior notes.
InvestingPro Insights
As Glaukos Corporation (NYSE:GKOS) continues to gain traction with its iStent and iDose products, real-time data from InvestingPro offers further context to the company's financial landscape. With a market capitalization of $6.4 billion, Glaukos is navigating the market with a notable revenue growth of 12.92% over the last twelve months as of Q1 2024. This growth is bolstered by a strong gross profit margin of 76.18%, underscoring the company's ability to maintain profitability on its products.
InvestingPro Tips highlight that Glaukos is trading at a high Price / Book multiple of 14.19, which may indicate a premium valuation by the market based on the company's book value. Furthermore, with a high return of 52.76% over the last year, investors have witnessed substantial growth in their holdings. It's important to note, however, that analysts are not expecting the company to be profitable this year, which may be a point of consideration for potential investors.
For those looking to delve deeper into Glaukos' investment profile, InvestingPro offers additional insights, including a comprehensive list of 11 more InvestingPro Tips, available at InvestingPro. These tips provide a more granular view of the company's financial health and market performance, which could be invaluable for making informed investment decisions.
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