Citi rates COH as Sell Thursday, September 19, 2013 - 16:29
September 19, 2013
Sonova disclosed its cochlear implant division, Advanced Bionics, won 1,500 units in the second Chinese government tender for 2013. Cochlear is facing a shortfall of 1,654 units in FY14 even if it wins 100% of the third tender, on Citi's estimates.
The broker sees downside risk to the share price if unit growth is flat or negative as the stock's PE multiple is based on the assumption it can deliver high levels of growth and sustain this over the long term. Citi maintains a Sell rating and $51.41 price target.
Target price is $51.41 Current Price is $61.15 Difference: minus $9.74 (current price is over target). If COH meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June. Citi forecasts a full year FY14 dividend of 204.80 cents and EPS of 232.60 cents. At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.29.
COH Price at posting:
$59.15 Sentiment: Sell Disclosure: Not Held
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