Morningstar trims NZ's Fisher & Paykel's FY26 forecast as co flags cost blowout on new US tariff plan

Fisher & Paykel Healthcare

03/02/2025 20:09

** Morningstar decreases fiscal 2026 gross margin forecast
for Fisher & Paykel Healthcare  FPH.NZ  by roughly 230 basis
points to 60.9% vs an estimated 62.3% in fiscal 2025 
    ** Investment research firm trims the medical equipment
maker's fiscal 2026 gross margin forecast as it estimates
roughly 42% of FY revenue to be attributed to U.S., and about
60% of U.S. volumes are supplied from Mexico
    ** Maintains NZ$25 fair value estimate for co
    ** "Fisher's opportunity lies in increasing the utilization
of nasal high-flow therapy for broader respiratory
applications." — Morningstar
    ** Morningstar doesn't expect co's market position to be
significantly affected as its internally developed proprietary
technology has helped maintain over 70% market share in
humidified ventilation in hospitals & leading innovation in
nasal high-flow therapy
    ** Co on Monday flagged its costs would likely increase in
FY26 due to the U.S.'s introduction of new 25% tariffs on
Mexico; such tariffs were later in the day paused for a month
    ** Stock down 8.6%, YTD

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))