Company Interview / Why Raymond is tuning into this stock

Raymond Chan from Morgans shares his perspective on Cochlear's (ASX:COH) FY25 guidance downgrade. Cochlear anticipates a net profit of $390-$400 million due to slower sales growth in developed markets. Raymond notes the potential for growth in emerging markets, which Cochlear (ASX:COH) highlights, yet competition in developed regions remains challenging.

Raymond outlines Cochlear's (ASX:COH) revenue structure: 60% from implants and 30% from services. While implants show a 10% growth, services face revenue declines. He points out that the service sector's challenges, such as rising maintenance costs, may cause patients to delay services, affecting revenue.

Raymond remains optimistic about Cochlear's (ASX:COH) upcoming sound processor launch in Asia-Pacific and Europe, yet acknowledges uncertainties due to cost-of-living pressures. He maintains a hold recommendation on Cochlear (ASX:COH) shares, preferring to await further results before reassessing the company's position.