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Thu, 26 Mar at 9:47 amExcerpts From Today's Broker Call
Thursday, 26 March 2020
COH - COCHLEAR LIMITED
UBS rates COH as Sell (5) - UBS is not surprised by the company's decision to raise up to $850m, considering the sudden deterioration in the operating environment and the likelihood of paying out $380m in penalties following the lost patent infringement case.
UBS updates modelling assumptions and reduces first half FY21 estimates for cochlear implant sales, delaying recovery into the second half.
The broker notes earnings forecasts remain positive throughout and, while there may be potential downside to operating cash flow, this should not pose an issue for the balance sheet. Sell rating maintained. Target is reduced to $145 from $158.
Target price is $145.00 Current Price is $168.00 Difference: minus $23 (current price is over target). If COH meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss). Current consensus price target is $185.04, suggesting upside of 10.1%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY20:
UBS forecasts a full year FY20 dividend of 160.00 cents and EPS of 279.00 cents .At the last closing share price the estimated dividend yield is 0.95%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 60.22. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 285.1, implying annual growth of -40.6%.Current consensus DPS estimate is 185.4, implying a prospective dividend yield of 1.1%.Current consensus EPS estimate suggests the PER is 58.9.Forecast for FY21:
UBS forecasts a full year FY21 dividend of 0.00 cents and EPS of 263.00 cents .At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.88. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 398.3, implying annual growth of 39.7%.Current consensus DPS estimate is 138.9, implying a prospective dividend yield of 0.8%.Current consensus EPS estimate suggests the PER is 42.2.Market Sentiment: 0.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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