Cochlear (ASX:COH) share price edges higher to break 52-week record

It's been a great year so far for the hearing solutions company.

| More on:
four excited doctors with their hands in the air

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Cochlear Limited (ASX: COH) share price has delivered a stellar performance so far in 2021.

Since the start of the year, the hearing solution company's shares have continued on their upwards trajectory, gaining almost 30%.

However, today Cochlear shares reached an important milestone, breaking a new 52-week high of $244.62.

With no news released to the ASX today, let's take a look at Cochlear's most recent price-sensitive announcement.

What's been pushing the Cochlear share price higher?

Investors have been buying up Cochlear shares over the last 6 months following the company's positive February half-year results.

For the 6-month period, Cochlear reported sales revenue of $742.8 million, down 4% against the first half of FY20's result. While this may appear disappointing, when looking closer, surgeries recovered towards the second quarter following the easing of COVID-19 shutdowns.

Sales revenue dropped 8% in the first quarter, but rebounded to edge 8% higher in the following 3 months (Q2 FY21). Cochlear attributed the performance to varying degrees of growth across established versus emerging international markets. The United States, Japan, South Korea, and China recorded robust sales, while India and Brazil struggled with volumes.

On the bottom line, the company posted an underlying net profit of $125.3 million, falling 6% against a COVID-free first-half period (H1 FY20). The result was driven by a solid recovery in sales revenue and lower operating expenses due to material COVID-related savings.

Cochlear is projecting it will achieve FY21 underlying net profit between $225 million and $245 million. This is a 46% to 59% increase on last year's FY20 result.

The company noted that the deployment of COVID-19 vaccines, and rapid return of surgeries, is a positive sign for its resilient business.

Broker update

After reporting its first-half results, a number of brokers rated the company with varying price points. Investment firm, Macquarie raised its price target for Cochlear by 1.7% to $245.00. Morgan Stanley followed suit to also increase its rating by 6.1% to $227.00. The most recent broker note came from Credit Suisse in late May, which initiated a price of $225.00 for the hearing solutions company.

At today's market close, the Cochlear share price had slightly retreated from its 52-week high to $243.46, up 0.58% for the day.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

CSL share price leaping higher amid $1.9 billion funding news

ASX 200 investors are bidding up the CSL share price on Wednesday.

Read more »

Two happy scientists analysing test results.
Healthcare Shares

Mesoblast share price rockets 36% on breaking FDA news

ASX investors are sending the Mesoblast share price soaring following promising FDA news.

Read more »

a doctor in white coat and stethoscope stands in front of a building holding an electronic device in his hands.
Healthcare Shares

Guess which ASX 200 healthcare share is jumping 7% on a guidance update

This healthcare share is performing better than expected in FY 2024.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

1 ASX healthcare stock that looks severely undervalued

I think this stock looks too cheap to miss.

Read more »

Stethoscope with a piggy bank and hundred dollar notes.
Healthcare Shares

Own Medibank shares? Here's why it's a rewarding day for you

Shareholders are getting a healthy boost today.

Read more »

Health professional looking at a laptop.
Healthcare Shares

Are CSL shares a must-buy in March?

Let's see what analysts are saying about this high-quality company.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

This ASX healthcare stock is up 72% on FDA news and 'historic moment'

Huge gains are been recorded by this stock on Tuesday. But why?

Read more »