Cochlear Ltd's stock fell 5.02% during intraday trading on Thursday, extending recent heavy losses for the hearing implant maker.

The decline follows a series of analyst rating downgrades and a significant reduction in the company's earnings guidance. Citi downgraded Cochlear to "sell" from its previous rating, slashing its price target to A$95 per share, citing a "laundry list of headwinds far beyond what we think most anticipated" from the company's recent trading update.

UBS also cut its recommendation to neutral, warning that Cochlear has limited scope to lift annual sales growth back to 10% anytime soon, noting a drop in U.S. unit sales and pressure from overburdened European health systems and reimbursement cuts in China. The company had previously slashed its forecast for annual earnings, with Citi lowering its FY26 net profit after tax estimates by 22% and reducing its implant growth rate forecast from high to mid-single digits amid lower-than-expected demand in developed markets.