Morningstar analysts have raised their fair value estimate on Australian medical device company Cochlear (ASX:COH) by 4% to A$200.

The brokerage also upgraded its EBIT forecasts for the medical equipment maker by 2% on average over the next nine years.

Cochlear reported a 14% increase in its FY23 underlying net profit after tax to A$305 million ($197.21 million).

Moreover, the brokerage forecasts a five-year group compound annual revenue growth rate of 9% with sales growth moderating in the future.

Among 20 analysts, three rate the stock as a ‘buy’, 13 rate it as ‘hold’, and four rate it as ‘sell’; their median price target is A$235.50.

The firm’s stock has increased by 20.8% this year, as of the last closing price.

Cochlear (ASX:COH) is a globally renowned medical device firm specializing in the manufacture and distribution of cochlear implantable devices for hearing loss.