There's a lot to like about Cochlear Limited (ASX: COH), the world's leading implantable hearing aid device manufacturer.
Not only are its products best-in-class, it also has defensive earnings, global exposure and is run by capable personnel.
Contrary to popular belief, Cochlear may not experience the positive effects of a falling Australian dollar in the short-term because a stronger US dollar will hinder sales revenue from foreign markets. Only 43% of Cochlear sales come from the Americas.
However, over the medium to long-term, there are many reasons to believe Cochlear shares will continue outperforming the market.
For example, the Baha 4 and Nucleus 6 range of devices are arguably the group's most exciting products in its 50-year history. Moreover, reporting in US dollars will see costs fall at the group's local manufacturing sites.
Is Cochlear a $100 stock?
Cochlear shares are currently sitting at $86, down from their April highs over $93. Given the recent falls in the company's share price, analysts at leading investment banks have moved to upgrade the stock – although some value targets are below current prices.
For example, both UBS and Deutsche Bank raised their price targets on Cochlear shares this week, to $79.40 and $82, respectively.
However, those numbers are in stark contrast to the intrinsic value estimates slapped on it by analysts at Goldman Sachs and Macquarie Group last month.
Goldman believes it's worth $95 a share (an 11% premium to today's prices) whereas Macquarie went with the tidy figure of $100 (a 16% premium).
Foolish takeaway
The short-term outlook for Cochlear might not be spectacular, but in my opinion its long-term outlook is great. I'm not prepared to say Cochlear will hit $100 soon, but I think it'll get there eventually.
That's why I recently bought shares.
