In anticipation of FY21 results on Thursday 27 May, Credit Suisse forecasts revenue of NZ$2bn, earnings (EBIT) of NZ$800m and profit of NZ$582m. A final dividend of NZ$0.34 is estimated.
The broker forecasts Hospital Hardware sales will rise 515% and Hospital Consumable sales up by 41%. Due to strong demand during covid-19, it’s estimated the nasal high flow and invasive ventilation installed base has increased more than 50% in FY21 versus FY19.
The analyst believes the market will be focused on the outlook commentary to gain some clarity of the expected utilisation of the higher installed base. The target price is increased to $34 from $33.50 and the Outperform rating is maintained.
Sector: Health Care Equipment & Services.
Target price is $34.00.Current Price is $31.22. Difference: $2.78 – (brackets indicate current price is over target). If FPH meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
