Envirotech Vehicles appoints Jason Maddox to board of directors
On Wednesday, RBC Capital Markets adjusted its stance on Fisher & Paykel Healthcare (FPH:NZ) (OTC:FSPKF), downgrading the stock from Sector Perform to Underperform and revising the price target down to NZD29.00 from the previous NZD30.00. The downgrade followed the company’s announcement of its financial results for the fiscal year 2025, which, while surpassing both RBC’s and the consensus estimates, revealed a notable deceleration in the growth of revenue from hospital new application consumables and homecare consumables.
RBC Capital Markets expressed concerns regarding Fisher & Paykel Healthcare’s future performance, citing the company’s provided financial guidance for fiscal year 2026 as a slight letdown. In response to these developments, RBC Capital has reduced its earnings forecasts for the healthcare equipment provider.
The revised price target of NZD29.00, down from NZD30.00, reflects a more cautious outlook on Fisher & Paykel Healthcare’s stock. RBC Capital’s decision to downgrade the stock to Underperform is rooted in their assessment that the company’s current valuation is steep when juxtaposed with its projected earnings trajectory.
In their commentary, RBC Capital highlighted the sluggish growth in key product segments as a significant factor behind the downgrade. The firm’s analysts pointed out that despite Fisher & Paykel Healthcare’s fiscal year 2025 results exceeding expectations, the slowdown in growth and the less-than-optimistic guidance for the following year prompted a reassessment of the stock’s potential.
The current analysis by RBC Capital Markets suggests investors may need to temper their expectations for Fisher & Paykel Healthcare’s performance in the near term. The healthcare company’s stock will be closely watched as the market digests this new information and adjusts to the revised outlook provided by RBC Capital.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.