Buy, hold, sell: 4DMedical, Cochlear, Westpac shares

S&P/ASX 200 Index (ASX: XJO) shares have had a rough start to the short trading week.

In the first 15 minutes of trading on Tuesday, the ASX 200 fell 134 points or 1.55% to a near three-week low of 8,490.9 points.

However, the market has recovered more than half of that initial loss. ASX 200 shares are now down 0.7% to 8,565.1 points.  

Meanwhile, let’s check out 3 ASX 200 shares with new ratings from the experts on The Bull this week.

4DMedical Ltd (ASX: 4DX)

The 4D Medical share price is $4.10, up 3.3% today and down 10% in the calendar year to date (YTD).

The longer term view on this ASX 200 healthcare share is extraordinary.

The 4DMedical share price has soared 1,260% over 12 months and 191% over five years.

Mark Gardner from MPC Markets has a buy rating on the advanced respiratory imaging technology company.

Gardner explains:

The shares remain volatile, and the business is still in the early stages of converting partnerships into material revenue.

However, the company has a stronger funding position after its recent capital raise and a clearer commercial pathway than in prior years.

We believe the market is undervaluing the longer term opportunity at recent levels.

Cochlear Ltd (ASX: COH)

Cochlear shares are $103.14, up 2.7% today and down 60% YTD.

The Cochlear share price hit an 11-year low of $88.74 after the company downgraded its earnings guidance in April.

The hearing implant maker cited many headwinds afoot.

They include capacity constraints at hospitals, falling consumer confidence, cancellations in the Middle East amid the war in Iran, industrial action in Italy and Spain, and China cutting its reimbursements to patients.

Gardner has a hold rating on Cochlear shares, commenting:

Cochlear remains a global leader in hearing implants, but the investment case has become more balanced.

The shares have been under pressure after analysts re-assessed growth expectations and lowered revenue, margin and valuation assumptions.

The long term demand profile remains attractive, supported by ageing populations and continued adoption of implantable hearing technology.

However, the market will need evidence that procedure volumes and margins can recover before a stronger recommendation is warranted.

At these levels, investors can continue to hold, but should monitor earnings momentum and further analyst revisions.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $34.31, down 1.4% today and down 12% YTD.

Gardner has a sell rating on this ASX 200 bank share.

He says Westpac has a strong retail franchise, but its valuation appears stretched.

For context, the Westpac share price hit a record high of $43.43 in February.

Gardner remarked:

Consensus targets imply downside from current levels.

The bank has made progress on simplifying its operations and cutting costs, but, in our view, earnings growth is still expected to lag the broader Australian market.

The bank is up against competitive pressures and the risk of softer credit conditions.

Investors may want to consider taking a profit at these levels.

The post Buy, hold, sell: 4DMedical, Cochlear, Westpac shares appeared first on The Motley Fool Australia.

More reading

• Why 4DMedical, Eagers Automotive, IDP Education, and oOh!Media shares are charging higher today
• BHP, CBA, and Westpac shares are sells this week: experts
• Which ASX bank stock is the best buy right now?
• Top brokers name 3 ASX shares to buy next week
• Why everyone selling Cochlear shares right now could regret it in 3 years

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. 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.