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

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news