Australia's Cochlear opts out of healthcare rally after Citi downgrade

Cochlear

19/09/2025 03:33

** Cochlear COH.AX falls as much as 1.7% to A$290.080, lowest since June 20

** Hearing implant maker lags other local health stocks; sub-index .AXHJ rallies 2.3%, supported by brokerage recommendations that helped CSL CSL.AX, Telix Pharmaceuticals TLX.AX gain 2.5% and 6.5%, respectively

** Citi downgrades COH to "neutral" from "buy"; cuts PT to A$320 from A$350

** Stands cautious on co's outlook; cuts mid-term sales estimates by 5%-6% on lower services sales growth

** Questions whether co can "overcome the slowness in processor uptake seen in FY25"

** Says customer satisfaction, delayed spending could impact sales of newer products

** Stock rated "hold" on avg; median PT at A$297.72, per LSEG-compiled data

** YTD, COH gains 1.1%

 (Reporting by Nichiket Sunil in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com))