Cochlear shares gain as analysts hike price target
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More news: Cochlear shares advanced on the ASX as Macquarie analysts hiked their price target on the company and the medical devices manufacturer announced changes to its executive team.
Shares were up 4.2% to $349.7 by 1:10pm AEST.
On Thursday, Macquarie analysts retained their 'underperform' rating on Cochlear, but hiked their target price 17.6% from $255 to $300.
Macquarie also lifted its earnings per share (EPS) estimates by 1% in FY24, but lowered them by 2% in FY25 and 4% in FY26.
The analysts increased their longer-term sales growth assumptions for the company's cochlear implants, driving average increases to its EPS estimates of 12% between FY30 and FY35.
However, they said Cochlear's current share price implied market-share gains and/or operating leverage "well ahead" of their forecasts, and saw "greater appeal" in fellow ASX biotechs CSL and ResMed.
Cochlear rings changes to leadership team
The news: Medical devices manufacturer Cochlear has announced changes to its executive team, replacing two of its global presidents.
The numbers: Richard Brook will step down as president of Europe and Middle East and Africa (EMEA) at the end of December 2024 after more than 20 years in the role. Cochlear's CEO and president Dig Howitt praised Brook for overseeing an eight-fold increase in EMEA revenue in that period.
Brook will be replaced by Anthony Bishop, current president of Asia Pacific and Latin America on 1 January 2025. Bishop was appointed president of Asia Pacific in July 2016 and took on responsibility for Latin America in June 2021.
Prior to joining Cochlear, Bishop spent 21 years at Johnson & Johnson Medical, including serving as its managing director of Australia and New Zealand.
Bishop's position will be filled by Stu Sayers, who has been Cochlear's chief financial officer since February 2021. Sayers was previously president of services after joining the company in July 2016, and before that led Amazon's subsidiary Audible in Asia Pacific.
The context: Sydney-based Cochlear, which manufactures implantable hearing devices, said an executive search is underway for a new CFO and will make an announcement when an appointment is made.
What they said: "I am delighted to be appointing Anthony and Stu to their new roles. Both have demonstrated track records, extensive knowledge of Cochlear and its customers and have demonstrated great leadership and developed high-performing teams," Howitt said.
The sources: ASX announcement, Macquarie research
