Macquarie suspects the spread of coronavirus could have a modest impact on profit expectations. The broker assesses US/European hospitals are unlikely to require additional hardware to cope with the epidemic, as was the case in China.
However, increased demand for consumables could add 2% to FY21 estimates for net profit.
As the virus spreads, the broker assesses the potential supply chain disruption increases and Fisher & Paykal Healthcare typically holds 12-14 weeks inventory.
Target is raised to NZ$25.02 from NZ$21.49. Neutral maintained. The broker transfers coverage to another analyst.
Sector: Health Care Equipment & Services.
Current Price is $24.03. Target price not assessed.
