Deutsche Bank analysts, already among the more bearish when it comes to assessing the outlook for Cochlear, have returned from the 2019 American Audiology Annual meeting with the message that, yes indeed, competition is heating up in the global market for hearing aids.
At this point in time, the analysts assert competitive dynamics seem to be benefiting Sonova and, to a lesser extent, Demant, but not Cochlear which is expected to have a number of tough quarters ahead.
Earnings estimates have been cut by up to -7%. The analysts are worried about multiple contraction now that momentum is to the downside. Sell rating retained. Price target drops to $148 from $157.
Sector: Health Care Equipment & Services.
Target price is $148.00.Current Price is $165.10. Difference: ($17.10) – (brackets indicate current price is over target). If COH meets the Deutsche Bank target it will return approximately -12% (excluding dividends, fees and charges – negative figures indicate an expected loss).