Cooper’s European Ambitions Fuel Share Price Momentum

Shares of Cooper are gaining traction following the company's strategic push to expand its footprint within the European vision care market. Trading recently at $83.90, the stock has posted a gain of approximately 7.5% over a 30-day period, despite remaining in negative territory on a one-year basis. The key question for investors is whether this European initiative can help close the stock's valuation gap.

A planned leadership change took effect on January 2, 2026, with Colleen Jay succeeding Robert Weiss as Chair of the Board. This transition comes as the company looks toward ambitious financial targets for the 2026 fiscal year. Management anticipates an acceleration in both revenue and profit, supported by the conclusion of a multi-year investment cycle.

The company's official guidance for 2026 outlines the following key metrics:
- Revenue: $4.299–4.338 billion
- Adjusted diluted EPS: $4.45–4.60
- Free cash flow: $575–625 million
- Organic growth: 4.5–5.5%

Furthermore, Cooper is targeting cumulative free cash flow exceeding $2 billion by 2028.

Should investors sell immediately? Or is it worth buying Cooper?

European Rollout: A Strategic Growth Lever

Central to the growth strategy is the European launch of the MyDay MiSight daily disposable contact lenses in the United Kingdom and select continental markets. This product addresses the rapidly expanding segment of childhood myopia management. The market's short-term reaction appears positive, with Cooper's share price advancing roughly 20.3% over the preceding 90 days.

Valuation Context and Prevailing Headwinds

At its current price of $83.90, the equity trades about 7.3% below a calculated fair value estimate of $90.50. A consistent track record of eight consecutive quarters of positive earnings surprises underpins the medium-term bullish case.

However, near-term challenges persist. The company recently reported an 80-basis-point contraction in gross margin, attributed to unfavorable product mix effects and tariff-related costs. Additional pressure stems from softer performance in the fertility and intrauterine device sectors, coupled with ongoing pricing competition within the e-commerce channel in the Asia-Pacific region.

The Path Forward

The narrowing of the valuation discount will likely hinge on two critical factors: the commercial success of the MyDay MiSight rollout across Europe and a demonstrated reversal in margin pressures. Effective market penetration combined with margin stabilization would strengthen the investment thesis, whereas weakness in these areas could see the gap persist.