On Monday, Jefferies upgraded shares of Glaukos Corporation (NYSE:GKOS), a medical device company, from Hold to Buy, setting a new price target of $125, a significant increase from the previous $84 target. The upgrade follows a proprietary survey indicating strong expectations for the company's iDose product, a device for treating glaucoma.
The analyst at Jefferies highlighted that the positive survey results support the potential for a sales growth inflection driven by iDose in the near term. The firm's conservative estimates still point towards a promising outlook for the product. Additionally, the analyst noted the sustained performance of Glaukos' core glaucoma and corneal franchises as a foundation for growth.
The new price target of $125 represents an 18% upside from the prior target. This adjustment is backed by a Discounted Cash Flow (DCF) analysis, which notably does not factor in any value from Glaukos' extensive pipeline of assets. The DCF is a valuation method used to estimate the value of an investment based on its expected future cash flows.
The Jefferies analyst expressed confidence in the sales trajectory for iDose, suggesting that the product's uptake among doctors and its use could lead to an increase in sales for Glaukos. The firm's evaluation suggests that the company is positioned well for near-term growth.
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