Cochlear Ltd
COH: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$385.00 | Sqdy | Znbrckqv |
Disposition of the Implants Business Inevitable Development for Demant
Demant's announcement of the sale of its medical segment to Cochlear ends the firm's unsuccessful decade-plus long excursion into the implants industry and further underscores the challenge of competing with wide-moat Cochlear in this space. We maintain our fair value estimate for the narrow-moat Demant as this segment has long been an investment sinkhole and unlikely to ever become a meaningful contributor.