Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


F&P Healthcare back in favour as share price nears 7-yr high

F&P Healthcare wins back favour as share price nears seven year high

By Suze Metherell

Jan. 22 (BusinessDesk) – Shares in Fisher & Paykel Healthcare are near a seven-year high as the maker of breathing masks and respirators continued an 18-month trend of “winning back favour” with investors, according to an analyst

The stock rose 3 percent to $4.09 today, and has steadily climbed 77 percent over the last two years, as it recovered from loss of market share, and a “stubbornly high” New Zealand dollar, Mark Lister head of private wealth research at Craigs Investment Partners told BusinessDesk. Because the Auckland based company exports most of its respiratory products, it is exposed to fluctuations in the currency.

The kiwi has “been high for three years now. It’s sort of plateaued, it hasn’t gone down, but it hasn’t gone up either,” Lister said. “If the kiwi dollar fell tomorrow Fisher & Paykel would go up,” but investors were increasingly more focused on “what’s going on in their offshore market.”

The stock is rated an average ‘hold’ based on a consensus of seven analysts compiled by Reuters, though there’s a divided view with four ‘buy’ ratings, two ‘hold’ and one ‘strong sell’. The analysts’ median target price is $4.10.

In November, F&P Healthcare said it expects annual profit of between $90 million and $95 million, though trimmed its predictions for operating revenue to a range of $610 million to $625 million from between $625 million and $645 million on a slightly stronger currency than anticipated.

Craigs’ Lister said the company has mitigated the impact of the strong currency “by getting the right product cycle, getting the right products into the right markets at the right time.”

This turnaround in their business has caused “investors to change their tune”, especially as the market grew more comfortable with a high kiwi, Lister said.

“F&P is still growing in those offshore markets, even though there is a high dollar, they’re still seeing growth, so they’re able to weather the storm,” he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news