Cochlear – Buy

300Cochlear announced an $850mn equity raise to enhance liquidity. The $800mn raise is underwritten via an institutional placement at $140 per share.

Following the placement, we estimate COH will have total liquidity of
$1.0bn +  with little in the way of debt maturities until 2022.

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The raise now removed balance sheet risk but time to elective surgery recovery remains unclear. We maintain our accumulate rating within the $150 – $170 price range.


Author: Leon Hinde

Leon has been working in the financial services industry for 18 years in management and advisory roles. Leon has extensive experience in general advice and dealings involving securities and derivative financial products.

PS 146 Securities & Derivatives, ADA 1 & 2 accreditation, Responsible Manager Certificate. Leon is authorised to provide financial product advice and deal with respect to the following financial products:

· Deposit Products
· Securities
· Derivatives
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks