Australia, NZ's healthcare sector moving on from COVID-19 - Citi

Fisher & Paykel Healthcare

18/01/2023 20:04

** Citi views healthcare sector in Australia and New Zealand
as resilient and expects underlying demand to normalise
throughout CY2023
    ** Adds that COVID-19 and supply chain disruptions are
decreasing but COVID-19 in China could create short-lived
headwinds in H2 of FY23
    ** Brokerage says with inflation risks, it continues to
prefer product manufacturers over service manufacturers due to
their lower reliance on government funding and lower healthcare
labour shortages   
    ** Brokerage views the pathology sub-sector as fair value
due to its slower-than-expected demand recovery and labour cost
inflation
    ** Citi maintains "buy" ratings on CSL Ltd  CSL.AX  and
Fisher & Paykel Healthcare Corporation Ltd  FPH.NZ ; upgrades
Resmed Inc  RMD.AX  to "buy" and downgrades Ansell Ltd  ANN.AX 
to "neutral" from "buy"
    ** Citi has a target price (TP) of A$335.0 for CSL; TP of
A$37 for RMD and TP of NZ$27 for FPH
 (Reporting by Udbhav Krishna P)
 ((UdbhavKrishna.P@thomsonreuters.com;))