Cochlear shares took a step back this week following an underwhelming full year profit report. While the business continues to grow, the market expected more, and some scale back of FY16 expectations was required. Having looked at Cochlear recently, we think that it may be a victim of its own success. For several decades, Cochlear has shown very strong growth and exceptional economics. Shareholders have done very well over this time, and Cochlear holds a special place in the hearts of many. The problem, is that good things eventually run their course, and there are clear signs that the future will be significantly more challenging for Cochlear. It appears as though a lot of investors may have extrapolated Cochlear’s past growth rates many years into the future. From our perspective however, it seems very unlikely that this can be achieved, and we conclude that future earnings growth may cause further disappointment. Cochlear remains a high quality business with some attractive features, but its share price is not one of them. READ THE FULL ARTICLE HERE: (VIEW LINK)