UPDATE: Citigroup Reiterates on The Cooper Companies Following Mixed Quarter Report

In a report published Friday, Citigroup analyst Amit Bhalla reiterated a Neutral rating on The Cooper Companies (NYSE: COO), but lowered the price target from $133.00 to $128.00.

In the report, Citigroup noted, “COO reported a mixed overall quarter as channel inventory reductions (distributor merger) and increased investments around MyDay led to both revs/EPS significantly below expectations. The COO story is beginning to transition from EPS upside to new products as the MyDay launch is gaining traction in the EU. MyDay is expected to have $25M revs in F14 and while long-term should drive adoption within the one-day SiH market, capacity is limited and investments are needed to support LT growth (which will pressure NT margins). While the Americas growth was soft (+2%cc in F4Q13), the company was confident the slowdown is transitory noting US Nov sales are up +18%cc. While CVI continues to grow faster than the market, we reiterate our Neutral rating as P&L leverage will be limited in the near-term as COO makes the necessary investments in MyDay.”

The Cooper Companies closed on Thursday at $127.00.