Fisher and Paykel shares rise on Macquare upgrade
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The news: Fisher & Paykel shares lifted on the ASX after Macquarie analysts upgraded their rating on the New Zealand health equipment provider.
The numbers: Fisher & Paykel shares were up 1.3% to $33.95 by 2pm AEST, having advanced more than 60% over the last 12 months.
Macquarie analysts upgraded the group from 'neutral' to 'outperform' and raised its target price from NZD27.85 ($25.60) to NZD39.20 ($36.03). They also lifted their earnings per share (EPS) forecasts by 3% in FY25, and 5% in both FY26 and FY27.
The context: The analysts said they see Fisher & Paykel's growth outlook as attractive, with potential upside to consensus forecasts from better-than-expected growth in its obstructive sleep apnea business and uptake of new products.
What they said: "We review the outlook for [Fisher & Paykel], focusing on the nearer-term outlook for homecare as well as long-term growth assumptions for hospitals," the analysts said.
"Overall, we see double-digit revenue growth as achievable, with operating leverage supporting solid EPS growth and [return on equity] improvement," they said.
The source: Macquarie research
