UPDATE: Citigroup Reiterates Neutral Rating, Lowers PT for The Cooper Companies

In a company update published earlier today, Citigroup Inc. reiterated its Neutral rating for The Cooper Companies, Inc. (NYSE: COO), but slightly lowered its price target from $86.00 to $85.00.

Citigroup went on to say “COO missed Street revenue estimates by $6M driven by weaker than expected results in Cooper Vision on a $4.8M FX headwind and US market softness late in April. While silicone hydrogels (+32% Y/Y cc) and multifocals (+26% cc) continue to be a positive, performance in non single-use sphere (+2% cc) and single-use sphere (+6% cc) missed Street estimates. Sphere products missed our estimate by $16M and led to lower total revenues of $344.6M (-$11.1M), and along with a higher tax rate (+190bps; $0.02 to EPS), the results offset a higher GM (+150bps) leading to the $0.08 miss vs. our model. While COO missed Street/our estimates by $0.08, FX impacted EPS by $0.07 Y/Y, of which $0.02-0.03 was incremental to FX changes since F1Q12, and there was a $0.02 headwind related to restructuring costs at an Australian manufacturing facility and Summit Doppler, and a $0.02 impact for operational costs related to the Avaira Toric recall – overall $0.06-0.07 in EPS hits in F2Q are from these items. FX will remain a headwind for the remainder of F2012 (see below), but COO has several other moving parts that will impact the earnings trajectory.”

The Cooper Companies, Inc. closed yesterday at $80.06.