Cochlear’s result was in line with the broker, featuring solid unit sales growth offset by weaker services and upgrade sales. The broker is not surprised upgrade sales have now reached the peak of the cycle, although the launch of the new Kanso processor may boost the second half.
In the meantime, Cochlear is trading at an 80% premium to the ASX Industrials ex financials index. A lift in target to $122 from $109 is not enough to move the broker from a Sell rating.
Sector: Health Care Equipment & Services.
Target price is $122.00.Current Price is $128.95. Difference: ($6.95) – (brackets indicate current price is over target). If COH meets the UBS target it will return approximately -6% (excluding dividends, fees and charges – negative figures indicate an expected loss).