On Tuesday, Stifel maintained a optimistic outlook on Glaukos Company (NYSE:), elevating its worth goal to $145 from $130 and reaffirming a Purchase score on the inventory. The adjustment follows a survey of iDose-trained surgeons, which revealed that reimbursement for the iDose’s new J-code is beginning to be obtained by medical doctors. The consistency and predictability of this reimbursement are deemed essential for rising the usage of the product.
The fourth quarter of 2024 is anticipated to be the primary important interval for iDose in real-world utility. The third quarter monetary outcomes are anticipated to incorporate up to date steering that may replicate iDose developments for the fourth quarter. The agency encourages funding in Glaukos forward of those upcoming developments.
The survey, which included suggestions from 26 surgeons, urged robust utilization expectations for iDose in 2024 and 2025. Comparability with information from July revealed that the amount has remained regular among the many 21 surgeons who participated in each surveys. Moreover, a proprietary tracker indicated a surge in surgeon trainings for iDose throughout August.
Primarily based on these findings, Stifel has elevated its gross sales forecasts for iDose, elevating its 2025 and 2026 income estimates from $80 million and $175 million to $100 million and $200 million, respectively. This adjustment additionally interprets to an total enhance in complete gross sales projections for these years.
In different latest information, Glaukos Company has reported a major 19% enhance in consolidated internet gross sales for the second quarter, reaching $95.7 million. This sturdy efficiency has led the corporate to revise its full-year 2024 internet gross sales steering upward to between $370 and $376 million. The expansion has been attributed primarily to the success of its US interventional glaucoma franchises, together with the iStent portfolio and iDose TR.
Internationally, Glaukos Company has achieved report gross sales in its glaucoma franchise, due to infrastructure growth and regulatory approvals. The corporate’s Corneal Well being franchise additionally contributed considerably, delivering $19.8 million in gross sales, with Photrexa contributing $16.7 million.
When it comes to future developments, Glaukos expects the adoption of iDose TR to develop in future quarters, facilitated by the J-code, which ensures constant reimbursement. The corporate additionally anticipates profitability post-iDose ramp-up, with 2025 being a pivotal 12 months. It is usually investing in novel applied sciences, together with Epioxa, and has improved its capital place by a convertible senior notes transaction.
InvestingPro Insights
As Glaukos Company (NYSE:GKOS) positions itself for a pivotal interval with its iDose product, the corporate’s inventory traits and monetary well being are of specific curiosity to buyers. Based on InvestingPro information, Glaukos boasts a considerable market capitalization of $7.35 billion. Regardless of analysts’ expectations that the corporate is not going to be worthwhile this 12 months, the income development metrics are promising, with a 15.14% enhance during the last twelve months as of Q2 2024, and an much more spectacular quarterly development charge of 19.02%.
The InvestingPro Suggestions spotlight the inventory’s low worth volatility and its excessive return during the last 12 months, which may very well be indicative of investor confidence within the firm’s long-term technique, together with the rollout of iDose. Moreover, Glaukos’ liquid property surpass its short-term obligations, suggesting monetary resilience. Nonetheless, with a unfavorable P/E ratio of -41.32 and a worth/ebook ratio of 11.06, the inventory is buying and selling at excessive valuation multiples, which can give some buyers pause.
Traders enthusiastic about Glaukos’ detailed efficiency metrics and extra InvestingPro Suggestions, which provide additional insights into the corporate’s monetary well being and inventory conduct, can discover them by InvestingPro’s platform. There are 15 extra suggestions obtainable, offering a complete evaluation for a well-rounded funding resolution.
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