FPH – UBS rates the stock as Sell

Fisher & Paykel Healthcare Corp’s latest trading update showed larger-than-expected covid-led hospital sales. Underlying revenue rose 73% versus last year for the first nine months of FY21 led by hospital sales growth of 113%.

Homecare sales growth were steady at 6% with lower OSA diagnosis rates countered by strong myAiro sales.

UBS sees a material drop in earnings over the next 18 months as hospital equipment and IV consumable sales fade along with a limited acceleration of high flow therapy adoption outside the ICU.

UBS maintains its Sell rating. Target rises to NZ$23.40 from NZ$21.35.

Sector: Health Care Equipment & Services.

 

Current Price is $32.15. Target price not assessed.

 

 

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →