Cautious Outlook on Cochlear: Sell Rating Due to FY26 NPAT Reliance and Nexa Implant Uncertainty
David Bailey has issued a Sell rating on Cochlear due to concerns over its FY26 net profit after tax (NPAT) guidance, which heavily relies on the anticipated launch of the Nexa implant. Uncertainty regarding the implant's market uptake and Morgan Stanley's forecasts indicating potential underperformance in NPAT compared to expectations raise doubts about Cochlear's ability to meet full-year guidance. Bailey, a 4-star analyst, focuses on the Healthcare sector and has an average return of 13.9% with a 46.97% success rate.
David Bailey has given his Sell rating due to a combination of factors impacting Cochlear’s financial outlook. One of the primary reasons is the company’s guidance for FY26 net profit after tax (NPAT), which suggests a significant reliance on the second half of the fiscal year for growth. This reliance is based on the anticipated launch of the Nexa implant, which introduces uncertainty regarding the timing and success of its market uptake.
Additionally, Morgan Stanley’s forecasts indicate a slight underperformance in NPAT compared to Visible Alpha’s expectations for the first half of FY26. This potential shortfall raises concerns about Cochlear’s ability to meet its full-year guidance, particularly if the Nexa implant does not perform as expected. These factors contribute to a cautious outlook, prompting the Sell rating on Cochlear’s stock.
According to TipRanks, Bailey is a 4-star analyst with an average return of 13.9% and a 46.97% success rate. Bailey covers the Healthcare sector, focusing on stocks such as Cochlear , Telix Pharmaceuticals, and Ansell.
