Cochlear Limited (ASX: COH) has been a staple for many ASX share portfolios in the past decade.
The hearing device maker has handsomely rewarded its original investors with a 2,350% return, according to Google Finance, and a 13.8% gain over 2021.
However, this year has ended on a sour note, as the share price actually has fallen more than 14% since its August high.
So where to from here? Is it one to buy for 2022?
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'Sales have stagnated'
Redpoint Investment Management chief Max Cappetta told The Motley Fool that "revenue growth has faltered" recently for Cochlear.
"Implant sales have stagnated during the COVID pandemic."
Despite sound business prospects, Cappetta reckons that the valuation is "stretched" at the moment.
"Our metrics do point to a resurgence in revenue growth but this seems to be fully priced in at present," he said.
"While there are improving prospects going forward, there also remains the potential for competing products — though we note that the Cochlear's devices remain clear market leaders."
Cochlear shares are dividing the experts
It seems Cochlear shares are polarising analysts.
The Motley Fool's Zach Bristow reported earlier this month that out of 4 major investment houses, one is bearish, one is neutral and two are slightly bullish on the stock.
Goldman Sachs has set a target of $197 a share, which is about a 10% downside from Wednesday morning's price of $218.18.
"The firm says that Cochlear's surgery volumes remain at risk due to their elective nature. It notes that Australian surgery numbers are yet to recover to pre-pandemic volumes," Bristow reported.
"Goldman Sachs recognises these challenges and reckons Cochlear is a sell in a recent note to clients."
Meanwhile Citi is neutral with a $220 target, while Jarden and Macquarie rate Cochlear as a "buy" with targets of $258 and $256 respectively.
According to CMC Markets, 8 of 12 analysts are recommending a "hold" for Cochlear shares as the year winds down.
