Wilsons upgrades Fisher & Paykel on FY profit growth
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The news: Wilsons Advisory analysts upgraded their rating on Fisher & Paykel Healthcare after the health equipment provider ended Wednesday's session as the best ASX 200 performer on the back of underlying profit growth in FY24.
The numbers: The analysts upgraded Fisher & Paykel to 'overweight' from 'market weight' and hiked their price target on the stock from $23.25 to $30. They also upgraded their earnings per share estimates by between 2% and 9% for the next three years to FY27.
Fisher & Paykel shares closed 4.17% higher at $26.39 on Wednesday.
The analysts said that the company's full-year revenue of NZD1.74 billion ($1.61 billion), which was up 10% year on year, and underlying NPAT of NZD264.4 million, up 6% on the prior year, beat their forecasts by 1% and 2% respectively.
The context: Wilsons Advisory noted that the healthcare group's re-rating over the last six months, including the response to yesterday’s result, was "entirely justified".
They said that sales channel dynamics had smoothed, and sales of new applications returned to COVID-driven record levels in the second half of the year.
The analysts restored Fisher & Paykel's "Cochlearesque" trading multiple, supported by its "large, underpenetrated" total addressable market and "dramatically improved" competitive situations, with Vapotherm and Philips degraded in key markets.
The source: Wilsons Advisory research
