COO: Future Returns Will Balance Buybacks With Activist Governance Pressure

Narrative Update on Cooper Companies

Analysts have raised their price target on Cooper Companies by 9 percent, from 83 dollars to 90.50 dollars. This reflects increased conviction in the company’s long term earnings power, despite slightly lower growth and margin assumptions, offset by a higher expected valuation multiple.

What's in the News

• Cooper Companies completed a major share repurchase tranche, buying 2,923,500 shares, or 1.47 percent of shares outstanding, for 197.28 million dollars between August 1 and October 31, 2025, bringing total buybacks under the long running program to 8,845,242 shares, or 4.5 percent, for 1.03 billion dollars (company filing).
• The company issued fiscal 2026 guidance calling for 4.5 percent to 5.5 percent organic revenue growth, with CooperVision projected to grow slightly faster than CooperSurgical and total revenue expected between 4.30 billion and 4.34 billion dollars (company guidance).
• Activist investor Browning West LP sent a public letter to Cooper Companies board on November 19, 2025, criticizing long term underperformance, capital allocation, and governance, and urging a shift to a pure play vision care model, strategic alternatives for CooperSurgical, and board refreshment including a new chair (activist letter).
• Jana Partners LLC disclosed plans on October 20, 2025 to push Cooper Companies to consider strategic alternatives, including a potential merger of its contact lens unit with Bausch plus Lomb and a clearer separation of the CooperVision and CooperSurgical businesses to unlock shareholder value (activist communication).
• On September 17, 2025, Cooper Companies expanded its equity repurchase authorization by 1.0 billion dollars to a total of 2.0 billion dollars, signaling continued use of buybacks as a core capital allocation tool alongside activist pressure for improved returns (company announcement).

Valuation Changes

• The fair value estimate has risen moderately from 83 dollars to 90.50 dollars, reflecting higher expected long-term valuation.
• The discount rate has decreased slightly from 8.06 percent to 8.05 percent, indicating a marginally lower perceived risk profile.
• Revenue growth has been revised down from 6.33 percent to 5.52 percent, signaling slightly more conservative top-line expectations.
• The net profit margin has been reduced modestly from 16.16 percent to 15.53 percent, implying a small downgrade to long-term profitability.
• The future P/E has increased from 26.11 times to 28.29 times, suggesting a higher anticipated valuation multiple on forward earnings.