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

 

Scoop Business: NZ Wool Exports Jump To The Highest In More Than A Decade

New Zealand wool exports jumped to their highest level in more than a decade in June, aided by a lower currency and strong demand from China, the nation’s largest market. More>>

ALSO:

Surreal Estate: Home Values Rise At Fastest Rate In Seven Years

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1% over the past year which is the fastest annual rate since 2007... The Auckland market has increased 18.8% year on year. More>>

ALSO:

New Employment Laws: Talley’s AFFCO Workers To Strike

The decision comes after the Talley’s owned company walked away from mediation last week and applied to end bargaining under the government’s new employment laws - the first such application since the law came into effect. More>>

ALSO:

Private Action: Employer Pleads Guilty Over Forestry Death

The CTU has always known that the death of forestry worker Charles Finlay was due to the poor health and safety practices of his employer... "The CTU, with the support of Charles’s family, needed to take this ground breaking private prosecution." More>>

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news