I think it is over-priced at a previous PE in the 40s. They also said it themselves - the upgrade cycle is impacted by the implants being high quality and users not needing to upgrade. The quality is great news, but I imagine most of the competition also have great quality (not sure about Nurotron).
Doesn't look like they are on target for 10% growth in units this FY. The new product will lead many patients to wait. One analyst also is saying the new product cycle for the processor seems quicker now than it was: So - they need a new trick IMO. A PE of 30 takes them down under $200. PE of 20x is about $130.
DJ Cochlear's Services Revenue Miss Looks Jarring to Bull -- Market Talk 2343 GMT - Cochlear's lower-than-expected December-half services revenue represents a jarring miss for Wilsons analyst Shane Storey. The hearing-implant maker's services revenue was 14% lower than Storey had expected. His concern is that it comes just halfway through the likely product cycle of Cochlear's latest processor. Cochlear's services revenue jumped 29% in the year-earlier period, making on-year comparisons more challenging, but uptake of the N8 processor has slowed more quickly than anticipated, he says in a note. Wilsons is reviewing its overweight rating and A$345.00 target price on the stock. Shares are down 11% at A$272.34. ([email protected]) (END) Dow Jones Newswires
COH Price at posting:
$264.14 Sentiment: Sell Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)