Cochlear Ltd (ASX: COH) shares tumbled 4% to $202.02 today despite the hearing aid manufacturer releasing no specific news to the market.
The audiology researcher is due to hand in its financial results for the year ending June 30 2019 on August 16, with analysts expecting a net profit close to $269 million.
The company itself is guiding for a net profit between $265 million to $275 million which would represent growth between 8% to 12% on the prior year.
The stock could be sinking today after the powerful analysts at Goldman Sachs downgraded their rating to a fence sitting "neutral" from "buy" on valuation grounds. The analysts have a $212 12-month share price target on the business, which suggests it has some 5% upside if Goldman's analysis is on the money.
The analysts are valuing it using a 25.8x forward EV/EBITDA multiple.
Other market-leading healthcare shares on the ASX on expensive valuations to consider include CSL Limited (ASX: CSL) and ResMed Inc. (ASX: RMD).
