Overview
William Blair has resumed coverage of Cooper Companies (NASDAQ: COO) and assigned the stock an Outperform rating. The firm’s call follows a stretch of activist investor engagement and a period of share underperformance, and it rests on expectations for net income growth this year as reported by InvestingPro data.
Context behind the new coverage
According to William Blair’s report, Cooper Companies has underperformed relative to the market for three years. Activist investor pressure began in the fall of 2025, and the company has since taken more assertive steps to lift earnings and cash flow while attempting to unlock shareholder value.
Central to those efforts is a strategic review that management announced, which is primarily focused on whether Cooper’s two main divisions - CooperVision (CVI) and CooperSurgical (CSI) - should be separated into independent entities. William Blair noted that shares currently trade at an 18x forward price-to-earnings multiple, roughly a 10% discount to peers, despite what the firm views as comparable earnings growth potential over the next couple of years.
Valuation and price targets
InvestingPro’s Fair Value assessment cited in the research suggests the stock is undervalued. Analyst price targets referenced in the firm’s research span from $73 to $100. For investors seeking additional analysis, InvestingPro makes a Pro Research Report available for Cooper Companies as well as for more than 1,400 other U.S. equities.
Recent financial and analyst updates
Cooper Companies reported fiscal 2025 results that exceeded consensus: revenue came in $10 million above expectations while earnings per share beat estimates by $0.04. Both the CVI and CSI divisions performed slightly ahead of expectations and together contributed to a 40 basis point outperformance on the adjusted operating margin line.
Following those results, multiple brokerages adjusted their views and price targets. Mizuho raised its price target to $100 and kept an Outperform rating. Needham lifted its target to $100 from $94 and maintained a Buy rating. Stifel reiterated its Buy rating as well, pointing to Cooper’s strong position in the contact lens market and the potential upside tied to a shift toward silicone hydrogel daily lenses.
Governance and leadership moves
As part of an agreement with investor Browning West, LP, Cooper Companies announced the appointment of Walt Rosebrough as an independent director effective January 2026. Rosebrough is slated to join the Corporate Governance & Nominating Committee and is being considered for the role of Chair by the end of 2026.
On the finance side, Brian G. Andrews has assumed the additional responsibilities of principal accounting officer while continuing in his roles as Executive Vice President, Chief Financial Officer, and Treasurer. Andrews succeeds Agostino Ricupati in that accounting officer role; Ricupati will continue with the company as Senior Vice President, Tax.
Conclusion
William Blair’s resumption of coverage with an Outperform rating comes amid a broader wave of analyst activity and company actions aimed at improving performance and corporate structure. The firm highlights a valuation gap relative to peers and expects net income growth this year, while other analysts have responded to stronger fiscal results by raising price targets and reaffirming positive ratings.