MENU

Top broker slaps buy rating on Cochlear shares

The Cochlear Limited (ASX: COH) share price has managed to push higher in morning trade despite the market sinking lower.

At the time of writing the hearing solutions company’s shares are up 1.5% to $176.70.

Why is the Cochlear share price pushing higher today?

With no news out of Cochlear this morning, today’s gain is likely to be attributable to a broker note out of Citi.

According to the note, the broker has upgraded Cochlear’s shares to a buy rating from neutral and lifted the price target on them to $198.00.

This price target implies potential upside of approximately 12% for its shares over the next 12 months.

Why is Citi bullish on Cochlear?

The broker has made the move after Cochlear’s share price tumbled lower over the last couple of weeks.

Prior to today, Cochlear’s shares had lost around 12% of their value since February 15. Citi felt that the selling had been overdone, prompting the upgrade.

In addition to this, its analysts now believe that Cochlear will overcome the impact of increased competition in the U.S. from competitors such as Sonova. It expects Cochlear’s implant growth in that market to resume in the second half of FY 2020.

Should you buy Cochlear’s shares?

I agree with Citi and think that Cochlear would be a great investment after its recent share price weakness. Although its first half results were a touch softer than expected, I feel investors ought to focus more on the next decade.

I believe that Cochlear’s long-term outlook is very positive due to the ageing populations tailwind, its high quality existing products, pipeline of exciting products under development, and its global distribution network.

Overall, I believe it would be a great buy and hold option along with fellow healthcare stars CSL Limited (ASX: CSL) and ResMed Inc. (ASX: RMD).

And if you like Cochlear, CSL, and ResMed, then I think you'll love these buy-rated blue chips.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked...

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2019."

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. 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