Ann: Cochlear provides update to FY25 earnings guidance, page-7

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Wednesday, 18 June 2025

COH - COCHLEAR LIMITED

UBS rates COH as Upgrade to Buy from Neutral (1) - UBS upgrades?Cochlear to Buy from Neutral with a higher target price of $325 from $285 due to the release of new products, which are expected to generate better-than-anticipated earnings growth for the company over the medium term.

The analyst points to the next-generation cochlear implant (CI) portfolio as having the potential to lift market share and generate a 10% compound average growth rate in revenue.

Over the next three years, services revenue is also expected to rise by 40% as the installed unit base lifts by 26%, with improvements in the sound processor replacement rate, the broker explains.

Adjusting for management's guidance changes,?UBS lowers the EPS forecast by -5% for FY25 on lower service revenue and increases FY27 EPS?by 4% due to the above-mentioned factors.

Target price is $325.00 Current Price is $281.66 Difference: $43.34 If COH meets the UBS target it will return approximately 15% (excluding dividends, fees and charges). Current consensus price target is $290.09, suggesting upside of 3.0%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY25:

UBS forecasts a full year FY25 dividend of 420.00 cents and EPS of 598.00 cents . At the last closing share price the estimated dividend yield is 1.49%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.10. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 618.8, implying annual growth of 13.7%. Current consensus DPS estimate is 433.8, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 45.5.

Forecast for FY26:

UBS forecasts a full year FY26 dividend of 484.00 cents and EPS of 690.00 cents . At the last closing share price the estimated dividend yield is 1.72%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.82. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 698.3, implying annual growth of 12.8%. Current consensus DPS estimate is 496.2, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 40.3.

Market Sentiment: 0.2All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources