Analyst Patrick Wood of Morgan Stanley maintained a Hold rating on Cooper Co (COO – Research Report), reducing the price target to $92.00.
Patrick Wood has given his Hold rating due to a combination of factors that suggest a limited impact on Cooper Co’s financial performance. The recent announcement of funding cuts to Planned Parenthood has raised concerns about potential effects on Cooper’s Surgical business, which provides contraception and fertility services. However, the impact is expected to be minimal because the majority of Planned Parenthood’s services are unrelated to Cooper’s offerings, with only a small portion potentially affecting the Paragard platform.
Furthermore, even if there is a decline in demand for IUDs through Planned Parenthood, many patients are likely to seek these services through alternative channels. Additionally, any decrease in contraception use could eventually lead to an increase in birth rates, which would benefit Cooper’s other business segments. Consequently, while the funding cuts present a short-term challenge, the overall effect on Cooper Co is anticipated to be modest, justifying the Hold rating.