Wells Fargo has lowered its rating on Glaukos (GKOS, Financial), shifting it from Overweight to Equal Weight. The firm also reduced its price target for the stock from $160 to $86. According to a research note, the anticipated growth of Glaukos' iDose product has already been factored into the current share price. Furthermore, Wells Fargo's analysis suggests that the core business of the company is unlikely to see any significant growth, projecting a stable performance with no increase year-over-year for fiscal 2025. This led to the reevaluation of the stock's potential, influencing the downgrade decision.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Glaukos Corp (GKOS, Financial) is $149.31 with a high estimate of $191.00 and a low estimate of $110.00. The average target implies an upside of 58.42% from the current price of $94.25. More detailed estimate data can be found on the Glaukos Corp (GKOS) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Glaukos Corp's (GKOS, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Glaukos Corp (GKOS, Financial) in one year is $105.03, suggesting a upside of 11.44% from the current price of $94.25. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Glaukos Corp (GKOS) Summary page.
GKOS Key Business Developments
Release Date: April 30, 2025
- Consolidated Net Sales: $106.7 million, up 25% on a reported basis or 26% on a constant currency basis year-over-year.
- Full Year 2025 Net Sales Guidance: Reaffirmed at $475 million to $485 million.
- US Glaucoma Franchise Net Sales: $59.1 million, representing a 41% year-over-year growth.
- International Glaucoma Franchise Net Sales: $29 million, with a 15% growth on a reported basis and 19% on a constant currency basis.
- Corneal Health Franchise Net Sales: $18.5 million.
- Cash and Equivalents: Over $303 million with no debt.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Glaukos Corp (GKOS, Financial) reported record first quarter consolidated net sales of $106.7 million, marking a 25% increase on a reported basis and 26% on a constant currency basis compared to the previous year.
- The company reaffirmed its full-year 2025 net sales guidance range of $475 million to $485 million, indicating confidence in its growth trajectory.
- Strong performance was driven by the adoption of iDose TR and robust growth in both US and international glaucoma franchises.
- The US glaucoma franchise achieved record first quarter net sales of $59.1 million, with a 41% year-over-year growth, primarily due to the success of iDose TR.
- Glaukos Corp (GKOS) maintains a strong capital position with over $303 million in cash equivalents and no debt, allowing for continued investment in growth initiatives.
Negative Points
- The implementation of five MAC LCDs in late 2024 has caused market turbulence, impacting the use of two main surgical devices in the same procedure, which is expected to continue throughout 2025.
- The company faces potential headwinds from the trialing of new competitive products in major international markets.
- The Corneal Health franchise experienced challenges due to the impact of MDRP, affecting realized revenues.
- There is ongoing uncertainty regarding the global macroeconomic environment, which could impact future performance.
- The company is navigating complex reimbursement dynamics for iDose TR, with varying levels of progress across different MAC regions.
