FPH – Macquarie rates the stock as Neutral

Macquarie suspects the spread of coronavirus could have a modest impact on profit expectations. The broker assesses US/European hospitals are unlikely to require additional hardware to cope with the epidemic, as was the case in China.

However, increased demand for consumables could add 2% to FY21 estimates for net profit.

As the virus spreads, the broker assesses the potential supply chain disruption increases and Fisher & Paykal Healthcare typically holds 12-14 weeks inventory.

Target is raised to NZ$25.02 from NZ$21.49. Neutral maintained. The broker transfers coverage to another analyst.

Sector: Health Care Equipment & Services.

Current Price is $24.03. Target price not assessed.

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