Jefferies lifts Fisher & Paykel stock rating, raises target to NZD40.90

Published 28/05/2025, 17:02
Jefferies lifts Fisher & Paykel stock rating, raises target to NZD40.90

On Wednesday, Fisher & Paykel Healthcare Corporation Limited (FPH:NZ) (OTC: FSPKF) received an upgrade in stock rating from Hold to Buy by Jefferies, with the price target also being increased to NZD40.90 from the previous NZD39.40. The upgrade comes after the company demonstrated strong financial performance, with revenue growth reported at 16% compared to the prior corresponding period (pcp).

Vanessa Thomson, an analyst at Jefferies, praised Fisher & Paykel Healthcare for its consistent delivery of results through a combination of product innovation, the promotion of clinical change, and continuous operational improvement. The company’s new application consumables saw an impressive 20% growth on pcp, while its OSA masks achieved a 14% increase on pcp.

The financial results also showed a significant expansion in the company’s gross margin, which widened by 181 basis points (129bp in constant currency). The company maintains an impressive gross margin of 60.68% and has achieved revenue growth of 11.57% over the last twelve months. Thomson highlighted these financial metrics as a testament to the company’s strong market position and its ability to leverage operational efficiencies.

The improvement in gross margin and the company’s leading share in the market were among the key factors influencing the decision to upgrade the stock rating. Jefferies sees Fisher & Paykel Healthcare as being well-positioned in regards to tariffs, which contributed to the positive outlook and the raised price target.

Investors are now watching Fisher & Paykel Healthcare as the company continues to make gains through its influence on clinical practice and its potential for further operating leverage, as noted by Jefferies’ analysis. The new price target of NZD40.90 reflects the firm’s confidence in the ongoing success of Fisher & Paykel Healthcare’s business strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.