Morningstar lifts NZ's Fisher & Paykel's FY23 EBIT forecast

Fisher & Paykel Healthcare

29/11/2022 19:27

** Morningstar lifts FY23 EBIT forecast for NZ's Fisher &
Paykel Healthcare Corporation Ltd  FPH.NZ  by 4% to NZ$248
mln($153.78 mln), maintains fair value estimate of NZ$22.00  
    ** Brokerage says increase in EBIT forecast driven by
favourable currency movements and a slightly faster gross margin
recovery 
    ** Morningstar adds co's HY results were slightly better
than expected benefiting from a weaker NZ$
    ** Still, anticipate stronger second-half sales due to
return of seasonal hospitalisation rates as northern hemisphere
enters winter - Morningstar
    ** Brokerage forecasts FPH's margins to beat management's
current targets as it expects greater benefits from scale
efficiencies and an increasing contribution from higher-margin
consumables 
    ** Morningstar expects co to maintain a net cash position
over the next five years and comfortably afford forecast 60%
dividend payout ratio in a typical year
    ** Four of nine analysts rate the stock "buy" or higher, two
"hold" and three "sell" ; their median PT is A$21.90 – Refinitiv
data
    ** Stock has fallen 30.5% this year, as of last close
($1 = 1.6126 New Zealand dollars)
 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))