COH – Macquarie rates as Underperform

The broker came out of Cochlear’s investor day noting the market opportunity for the company is substantial, but it will require ongoing investment in order to increase utilisation. The product offering is attractive but the market is factoring in market share and industry growth rates well ahead of the broker’s base case.

Read More

Sounding Out The Risks

Cochlear Ltd (ASX: COH) released its 2014 full-year financial results on Tuesday. The market reacted favourably to the result, largely due to the considerable increase in revenues from the first half of 2014 to the second half of 2014. However, we remain cautious about the company’s prospects for two reasons.

Read More

COH – Citi rates the stock as Sell

Cochlear has been found guilty of patent infringement by the LA District Court in the suite brought by Advanced Bionics. Cochlear will seek to overturn the verdict. Citi estimates, should the company be unsuccessful, that it will need to increase its borrowing facility to pay the damages bill, which could be as much as US$400m.

Read More