Raising FVE for Cochlear After Adjusting for Long-Term Currency Outlook but Shares Still Overvalued
We are raising our fair value estimate for wide-moat-rated Cochlear to AUD 159 per share from AUD 153 after updating our long-term currency forecasts, given the recent weakness in the Australian dollar/U.S. dollar exchange rate. As such, shares in Cochlear are currently trading at a 22% premium to our intrinsic assessment and are overvalued, in our opinion. The current share price implies a group revenue five-year CAGR of around 13.5%, compared with our five-year CAGR forecast of 11%.ÂCurrency ...
Cochlear is a for-profit entity and operates in the implantable hearing device industry. Co.'s implant systems comprise an implant which is inserted during surgery and an external sound processor. As of June 30 2016, Co. sold in over 100 countries and had a direct presence in approximately 20 countries and used distributors and agents in other areas. Manufacturing for the cochlear implant product range is based in Australia. The bone conduction implant product range is manufactured in Sweden. Co.'s supply chain operates with product being distributed from its manufacturing sites in Australia and Sweden to its regional distribution centres in the U.S., the U.K. and Panama.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
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