Credit Suisse rates COH as Neutral

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Friday, 21 May 2021

COH - COCHLEAR LIMITED

Credit Suisse rates COH as Neutral (3) - After a read through of a competitor's result, Credit Suisse forecasts Cochlear's market share increasing to around 59% in FY21

from 53% in FY19. It's felt this is due to a superior brand and product portfolio, and a sharp focus on the patient pipeline during covid.

Despite this positive, the broker continues to believe emerging markets will weigh on growth into FY22. The forecast FY21 EPS increases by 1% on market share gains though FY22 and FY23 EPS estimates are lowered by -4%.

The Neutral rating is unchanged and the target falls to $225 from $230.

Target price is $225.00 Current Price is $216.58 Difference: $8.42 If COH meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges). Current consensus price target is $214.16, suggesting downside of -1.1%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 222.00 cents and EPS of 369.00 cents . At the last closing share price the estimated dividend yield is 1.03%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.69. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 373.4, implying annual growth of N/A. Current consensus DPS estimate is 237.7, implying a prospective dividend yield of 1.1%. Current consensus EPS estimate suggests the PER is 58.0.

Forecast for FY22:

Credit Suisse forecasts a full year FY22 dividend of 298.00 cents and EPS of 458.00 cents . At the last closing share price the estimated dividend yield is 1.38%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.29. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 454.6, implying annual growth of 21.7%. Current consensus DPS estimate is 326.4, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 47.6.

Market Sentiment: 0.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources