Transfer of Analyst Coverage on Cochlear, Raising FVE to AUD 180 per Share

We have transferred analyst coverage of wide-moat Cochlear and raised our fair value estimate to AUD 180 per share from AUD 173 per share previously. The increase reflects a lower discount rate of 7.5% from 8.9% previously, largely offset by slightly more conservative, though still buoyant expectations, for future growth in revenue and profitability. Our lower discount rate assumption reflects a reappraisal of the nature of Cochlear’s business relative to the rest of our coverage.