Citi cuts PT on NZ's Fisher & Paykel after lower FY22 revenue outlook

Fisher & Paykel Healthcare

23/03/2022 20:17

** Citi cuts respiratory products maker Fisher & Paykel
Healthcare's  FPH.NZ  price target to NZ$28.50 from NZ$28.75;
maintains "neutral" rating
    ** Also cuts gross margin in line with FPH's guidance for
FY22 and cuts gross margin for FY23 as freight costs remain
elevated heading into FY23
    ** FPH said on Wednesday it expects https://www.fphcare.com/nz/our-company/news/fy22/fph-provides-revenue-guidance-for-fy2222-03-23
 FY22 operating revenue between NZ$1.68 bln ($1.17 bln) and
NZ$1.70 bln vs FY21 operating revenue of NZ$1.97 bln
 urn:newsml:reuters.com:*:nL3N2VP3VE
    ** Co says freight rates remain elevated and for 2022, are
expected to impact company's long-term gross margin target of
65% by about 250 basis points
    ** Brokerage says EPS for FY22, FY23 and FY24 of the New
Zealand-based co changes by -2%,-6%, and 0%
    ** FY23 revenue will depend on the hospital utilisation rate
of the additional Optiflow devices sold throughout the pandemic
- Citi
    ** Two of seven analysts rate the stock "buy" or higher,
four "hold" and one "sell" or lower; their median PT is NZ$33.78
– Refinitiv Eikon data 
    
    
    
    



($1 = 1.4333 New Zealand dollars)

 (Reporting by Upasana Singh in Bengaluru)
 ((Upasana.Singh@thomsonreuters.com))