Credit Suisse downgraded expectations for Fisher & Paykel Healthcare’s hospital revenue by -12% and -14% in FY23 and FY24 respectively, reiterating difficulty in a clear read on the market.
The broker noted usage of the company’s nasal high flow therapy has declined from a peak as covid hospitalisations decrease and usage remains constrained outside of covid.
Adjusting for company guidance, Credit Suisse deceases its FY22 net profit forecast -8% to NZ$366m, representing a -30% year-on-year decline.
The Neutral rating is retained and the target price decreases to $27.00 from $34.00.
Sector: Health Care Equipment & Services.
Target price is $27.00.Current Price is $23.20. Difference: $3.80 – (brackets indicate current price is over target). If FPH meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
