Company Interview / Cochlear, Coles & post-COVID upgrades

Andrew Dale from ECP Asset Management notes Cochlear faces challenges with big tenders in China and India, alongside pressure on services revenue. Like iPhones, Cochlear (ASX: COH) implants need upgrades every 5-7 years. Post-COVID upgrades are stabilising, presenting a growth opportunity.

He highlights the resilience of consumer spending amid easing interest rates. Notable growth in credit card purchases and strong retail performances, like JB Hi-Fi (ASX: JBH) and Coles (ASX: COL), suggest consumer confidence remains buoyant despite inflation pressures. Retailers are embracing this uptick.

Andrew comments on James Hardie's (ASX: JHX) US acquisition, seeing long-term value in the siding market. He suggests investors should focus on quality, domestic names amid global uncertainties. Despite lacking exposure to energy/gold, he prefers high-quality growth stocks.