Morningstar sees moderating unit sales growth for 'overvalued' Cochlear

Cochlear

17/08/2025 22:28

** Analysts at Morningstar say shares of Australia's Cochlear COH.AX are overvalued, as the market assumes high cochlear unit sales based on historical results

** Raise fair-value estimate by 2% with the time value of money

** Morningstar sees a five-year CAGR for unit growth at 8%, compared with the co's three-year CAGR of 12%

** Expects hearing solutions firm's revenue growth to moderate due to slowing implant sales to children, and declining avg selling prices, given a mix shift to lower-priced emerging markets

** Notes FY25 services revenue fell 10%, assumes fall due to cost-of-living pressures, and delays in upgrades given customers' satisfaction with older sound processors

** YTD, stock up 6.6% as of last close

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))