Cochlear – Buy

Posted on | by Leon Hinde

Cochlear recently completed an $850mn equity raise via an institutional placement at $140 per share. The capital raise now removes any balance sheet concerns.

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

The pathway back to elective surgery appears to be improving and we, therefore, see the current price range as an opportunity to accumulate COH shares.

 

Macquarie Bank

Posted on | by Leon Hinde

Macquarie Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

MQG reported a 24% fall in second-half net profit compared to the same period a year ago, to $1.27bn. Second-half impairment charges doubled to $900m.

Macquarie’s full year net income was down 8% to $2.7bn. We remain cautious on the deteriorating earnings and doubtful debt charges across the industry over the next six months.