Analysts hike PT on Australia's Cochlear on strong earnings, fundamentals

Cochlear

19/02/2024 19:29

** Analysts at Citi and Jefferies hike price target on
Australian hearing implants maker Cochlear Ltd  COH.AX  after
robust 1H earnings and strong fundamentals
    ** Citi hikes PT to A$265.00 from A$255.00, retains "sell"
rating; Jefferies hikes to A$303.50 from A$292.00, retains
"hold"
    ** COH's 1H24 reported underlying profit jumped 35% to
A$191.8 mln ($125.36 mln) on Monday; declared interim dividend
of A$2/share
    ** COH also paused buyback citing "high interest rate
environment"
    ** Ended 2% lower on Monday, snapping a four-day winning
streak
    ** Citi says pause of share buyback implies "stock remains
expensive"
    ** Citi adds business remains in strong competitive
position, but its dominant market share means earnings growth
will be limited by factors like pace of market growth
    ** Jefferies calls COH a "quality franchise", adding it
"continues to invest in business, which should drive growth over
medium term"
    ** Citi expects FY24 underlying net profit of A$399.7 mln,
while Jefferies expects A$398.3 mln, largely in line with COH's
forecast of between A$385 mln and A$400 mln


($1 = 1.5300 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru; Editing by Lisa
Shumaker)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))