Morgan Stanley lifts Fisher & Paykel stock rating to Overweight

Published 30/05/2025, 09:42
Morgan Stanley lifts Fisher & Paykel stock rating to Overweight

On Friday, Morgan Stanley (NYSE:MS) upgraded Fisher & Paykel Healthcare stock from Equalweight to Overweight, setting a new price target of NZD38.90, increased from the previous NZD36.70. The upgrade reflects the firm’s positive view on the company’s financial performance and future prospects.

Stifel analysts cited the company’s fiscal year 2025 results and guidance for 2026, along with revised operational assumptions, as the basis for the upgrade. These changes resulted in less than a 1% average earnings per share (EPS) revision through to FY28e, with approximately a 1% increase in the outer years. The updated price targets are now set at NZD38.90 and AUD35.90, up from NZD36.70 and AUD34.00 respectively.

The analysts noted that while market multiples are high, Fisher & Paykel Healthcare’s stock is favorably positioned compared to others in the industry. This favorable view is based on the company’s earnings growth relative to variability, return on invested capital (ROIC), and the strength of its balance sheet.

The report highlighted Fisher & Paykel Healthcare’s attractive growth outlook and the potential for approximately 12% upside from the new price targets. Based on these factors, Morgan Stanley has shifted its rating to Overweight for the company’s stock, indicating confidence in the company’s performance and valuation compared to its peers.

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