Cochlear Ltd (ASX: COH) shares have been out of form recently.
For example, since the end of January, the hearing solutions company's shares have lost 15% of their value.
This leaves them trading much closer to their 52-week low than their 52-week high.
Is this a buying opportunity for investors? Let's take a look at what analysts are saying about this high quality company.
Are Cochlear shares a buy?
The team at Goldman Sachs sees value in its shares at current levels, but not quite enough to warrant a buy rating.
Its analysts currently have a neutral rating and $294.90 price target on Cochlear shares. Based on its current share price of $272.99, this implies potential upside of 8% over the next 12 months.
Goldman also expects a 1.6% dividend yield this year and next, which boosts the total potential return to almost 10%. Not bad for neutral! It said:
COH is the market leader in the manufacture and distribution of implantable hearing products, primarily cochlear implants (CI) but also bone-conduction implants. In our view, COH to date has executed well on its strategy and we forecast CI growth to step up from the investments to date in expanding the adults & seniors market.
Services growth however is likely to slow on the back of tighter funding requirements and with the stock trading close to our valuation we are Neutral rated. Key positive catalysts: Expanded reimbursement & COH product launches.
Elsewhere the team at Morgans has a hold rating and $285.55 price target on its shares and UBS has a neutral rating and $285.00 price target.
One bull
While the majority of brokers are sitting on the fence with their recommendations, there is one broker out there that is urging its clients to buy the dip.
According to a recent note out of Citi, its analysts have put a buy rating and $300.00 price target on its shares. Based on its current share price, this implies potential upside of 10%. This extends to approximately 12% when including dividends.
Citi believes that recent weakness has created a buying opportunity, highlighting that its shares are trading on lower than normal multiples. It also appears to see uncertainty regarding new product launches as priced in.
All in all, this could make it worth considering an investment in Cochlear shares while they are down in the dumps.
