Icarus Signal New Entries For Today: Cochlear

This story features MADER GROUP LIMITED. For more info SHARE ANALYSIS: MAD

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

Cochlear ((COH)) has remained on many an investors' radar since the company had to announce a recall of its top product, with the main question being asked whether the subsequent drop in share price has created a buying opportunity, or not?

The jury's still out on that one and it probably very much depends on what price level we're adding to the question. Since peaking above $80 (before recall announcement) Cochlear shares have traded close to $45 and as high as $64. In recent sessions weakness has started to kick in which, in Icarus terms, has pushed the share price back under the consensus price target, currently at $59.81.

It looks like the shares are finding it increasingly difficult to withstand gravity when trading above the target, even when that target is merely the result of very polarised market views on the outlook for Australia's pride in international healthcare.

Over at RBS Morgans, technical chartists have come to a different view. They believe that Cochlear shares have been merely setting themselves up for another rally towards the $64 price mark. RBS Morgans believes buying support is located around $57 and today's mild rise in the share price seems to vindicate this view. In addition, momentum indicators are approaching oversold territory, and the chartists believe this points to a likely bounce in the short-term.

The chartists believe Cochlear shares are aiming for $63 in the weeks ahead. They do advise traders willing to play the opportunity should set a strict stop loss just below $57.23.

Cochlear has joined the likes of Tox Free Solutions ((TOX)), Mastermyne ((MYE)), Super Retail Group ((SUL)) and Cabcharge ((CAB)) in a group of 28 stocks which are trading within 3% of their consensus price target. Another 47 stocks are trading above target, including Maverick Drilling and Exploration ((MAD)), Matrix Composites and Engineering ((MCE)), Talent 2 ((TWO)) and Tishman Speyer Office Fund ((TSO)).

Investors should note Cochlear has a long tradition of trading above target for extended periods of time and there's no indication as such this is going to change anytime soon.

Investors should consider the information and data are provided for research purposes only.

Stocks <3% Below Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 ANN $ 14.86 $ 15.25 2.65% 2 CAB $ 5.73 $ 5.90 2.97% 3 CIF $ 1.14 $ 1.15 1.32% 4 HDF $ 2.18 $ 2.24 2.75% 5 IRE $ 7.18 $ 7.39 2.88% 6 JHX $ 7.30 $ 7.41 1.49% 7 MIN $ 13.10 $ 13.47 2.79% 8 MYE $ 2.52 $ 2.54 0.79% 9 SUL $ 7.18 $ 7.34 2.27% 10 TOX $ 2.68 $ 2.68 0.11% 11 WOR $ 28.68 $ 29.00 1.11% 12 WTF $ 4.46 $ 4.52 1.43%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 APA $ 4.94 $ 4.85 – 1.82% 2 MAD $ 0.80 $ 0.76 – 4.40% 3 MCE $ 3.37 $ 3.33 – 1.19% 4 TSO $ 0.91 $ 0.91 – 0.55% 5 TWO $ 0.51 $ 0.48 – 4.95%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 HZN $ 0.31 $ 0.47 54.10% 2 KGL $ 1.44 $ 2.34 62.50% 3 LNC $ 1.37 $ 2.05 49.64% 4 SFW $ 0.32 $ 0.47 49.21% 5 WTP $ 1.05 $ 1.63 55.24%

To see the full Icarus Signal, please go to this link

Technical limitations

If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

Click to view our Glossary of Financial Terms