The Motley Fool

UBS claims it’s time to sell your Cochlear (ASX:COH) shares

Cochlear Limited (ASX: COH) manufactures and distributes cochlear implantable devices for hearing impaired patients in Australia and more than 20 countries. 

UBS has updated its modelling of crucial drivers of Cochlear shares, resulting in minor changes to forecast earnings per share (EPS) by -3%. Forecast EPS growth will average 10.5% over the next three years.

Based on management’s comments at a recent investor day around operating expenditure to increase future market penetration and maintain net profit margins, UBS sees downside risk to FY19/FY20 Bloomberg’s consensus Net Profit After Tax.  

UBS has increased its share price target to A$170, up from $150. The share price is up 37% in a year, and at the current share price of $194, the company is a sell according to UBS.

Cochlear is trading on a forward price-earnings-ratio of 46x, which is a premium to the Health Care Equipment & Services industry median of  19.8x. 

This “Holy Grail” Technology Could Produce World’s First Trillionaire

One of the world’s richest people is sounding the alarm on what could be a trillion-dollar technology.

And when a tech billionaire – several times over – speaks, it pays to listen.

This could be your chance to get in on the ground floor!

Click here to discover a $19.9 trillion dollar idea — hidden in plain sight!

Motley Fool contributor Rosemary Steinfort has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now