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.