Year-to-date the Cochlear Limited (ASX: COH) share price has put on an impressive gain of almost 50%.
Investors have been fighting to get hold of the implantable hearing solutions provider's shares due largely to its strong full-year result and guidance for FY 2018.
In FY 2017 Cochlear posted a record net profit of $224 million and has forecast net profit of $240 million to $250 million in FY 2018 based on an AUD/USD exchange rate of 80 U.S. cents.
However, not everyone is positive on Cochlear.
In fact, this morning a research note out of the Macquarie equities desk revealed that the broker has initiated coverage on the company with an underperform rating and $161.00 price target.
This price target is almost 12% lower than Friday's close price.
According to the note, the broker believes that the current share price has factored in a much greater market share gain than the company has forecast.
Macquarie doesn't appear to be convinced that the company will be capable of outperforming its forecasts to such a degree and its share price may suffer as a result.
Cochlear isn't the only healthcare share trading on high valuations. Both Nanosonics Ltd. (ASX: NAN) and CSL Limited (ASX: CSL) trade at a premium to the market-average. Time will tell whether they all deliver sufficient growth to justify the premiums.
