Fisher & Paykel Healthcare: Strong Demand in Consumables

We raise our fair value estimate for narrow-moat Fisher & Paykel Healthcare by 4% to NZD 23.50, or AUD 22.00 at current exchange rates, largely due to the time value of money and strong performances in consumable sales. Management upgraded fiscal 2024 revenue guidance by 2% to NZD 1.73 billion, and fiscal 2024 underlying net profit after tax guidance range by 3% at the midpoint to NZD 260 million-NZD 265 million. The upgrade was largely due to strong demand for hospital consumables and its Evora full mask, which launched in May 2022. The firm also said there will likely be a write-down on its land in Karaka, Auckland, which will be confirmed at the full-year result in May 2024.