Cochlear has revealed it is investing in direct clinic ownership in certain sites and has opened its first in Melbourne. The broker believes this strategy, indicative of the growth challenges in the industry, has the potential to provide insights into patient capture that have previously been absent.
The move is worth watching and Merrills retains a Neutral rating. The target is raised to $57.45 from $56.30 as valuation is rolled forward.
Sector: Health Care Equipment & Services.
Target price is $57.45.Current Price is $59.46. Difference: ($2.01) – (brackets indicate current price is over target). If COH meets the BA-Merrill Lynch target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).