New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

Fisher & Paykel Healthcare Corp / Equity Bottom-Up

<ul><li>F&amp;P Healthcare's (FPH) FY25 trading update affirmed solid revenue trends (and still leaves scope for upside relative to guidance), but arguably more importantly for investors, the driver appears driven by superior gross margin expansion, which will support investor confidence in earnings expectations over the coming years.</li><li>With revenue guidance unchanged, we think the strong revenue trends (which appear to be broad based across all products and regions) leave plenty of room for error in trading performance for the rest of FY25 relative to guidance (absent any material FX changes).</li><li>We now view the midpoint of its guidance as a more appropriate low-end. We acknowledge FPH continues to look expensive at ~50x 12 month forward PE, but we think this is warranted, given: (1) stellar current performance, with upcoming news flow likely continuing to be positive, and (2) strong near-term earnings growth (FY25–FY27 EPS CAGR of ~+23%). Retain NEUTRAL. </li></ul>

F&amp;P Healthcare's (FPH) FY25 trading update affirmed solid revenue trends (and still leaves scope for upside relative to guidance), but arguably more importantly for investors, the driver appears driven by superior gross margin expansion, which will support investor confidence in earnings expectations over the coming years.With revenue guidance unchanged, we think the strong revenue trends (which appear to be broad based across all products and regions) leave plenty of room for error in trading performance for the rest of FY25 relative to guidance (absent any material FX changes).We now view the midpoint of its guidance as a more appropriate low-end. We acknowledge FPH continues to look expensive at ~50x 12 month forward PE, but we think this is warranted, given: (1) stellar current performance, with upcoming news flow likely continuing to be positive, and (2) strong near-term earnings growth (FY25–FY27 EPS CAGR of ~+23%). Retain NEUTRAL. 

Fisher & Paykel Healthcare Corp

F&P Healthcare - N a Purple Patch