2 ASX 200 shares newly upgraded this week

After announcing big company news this week, two S&P/ASX 200 Index (ASX: XJO) shares have been upgraded by the experts.

One stock fell 39% after its earnings guidance was downgraded, while the other spiked 17% after a new operating model was unveiled.

Let’s recap what happened, and what the new ratings are for these ASX 200 shares.

Cochlear Ltd (ASX: COH) 

Cochlear shares were smashed this week after the hearing implant device maker downgraded its earnings guidance.

The company now expects an FY26 underlying net profit of $290 million to $300 million, down from $435 million to $460 million.

Cochlear cited capacity constraints at hospitals, falling consumer confidence globally, and cancelled procedures in the Middle East.

The company said:

Consumer sentiment has declined in key markets, reaching historic lows in the US.

The decline appears to be affecting discretionary healthcare decisions in the adults and seniors segment, adding to demand uncertainty in the near term.  

On top of that, industrial action in Italy and Spain has delayed procedures, and China has lowered its reimbursements to patients.

Morgan Stanley upgraded Cochlear shares to a hold rating following a 39% fall in the share price on the day of the news.

The broker slashed its 12-month price target from $194 to $119.

The Cochlear share price hit a new 52-week low of $95.81 yesterday.

Over the past 12 months, the ASX 200 healthcare share has dropped 64%.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates shares rose sharply this week after the company announced a new regional operating model to raise efficiency.

This ASX 200 wine share has been on the nose with investors and fell to a multi-year low of $3.34 last month.

The company’s new model is part of a global transformation program called TWE Ascent.

Treasury Wine will operate four new regional divisions: The Americas, Australia and New Zealand (ANZ) and Europe, Greater China, and Emerging Markets (Rest of Asia, Middle East and Africa).

Treasury Wine Estates CEO Sam Fischer said:

We are reshaping TWE to drive clearer accountability for performance and to enable faster, more market-connected decision-making as a foundation for consistent depletions growth.

Fischer added:

Combining the deep local insight of our in-market teams with the scale and expertise of our global functions will step change in-market execution, whilst retaining our enhanced focus on Penfolds and other priority luxury brands.

Citi likes the look of the plan, and upgraded Treasury Wine Estates shares to a hold rating as a result.

The ASX 200 wine share rose 17% to $4.73 on the day of the announcement. Citi’s 12-month price target is $4.25.

Over the past 12 months, the ASX 200 wine share has tumbled 48%.

The post 2 ASX 200 shares newly upgraded this week appeared first on The Motley Fool Australia.

More reading

• Why is everyone buying this beaten-down ASX wine stock now?
• What is Morgans saying about Cochlear and Northern Star shares?
• 5 ASX 200 shares with renewed buy ratings this week
• Cochlear stock down 40%: How much has this cost ASX investors?
• Here are the top 10 ASX 200 shares today

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.