Fisher & Paykel Healthcare Corp Ltd

FPH: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$54.00	Xkztvmk	Lhpfhccfy

Disappointing Homecare Growth and Outlook but Review of Systemic Risk Has Us Raise FVE to NZD 16.40

May 27, 2019

The transition of coverage to a new analyst and reduction in cost of equity following a review of narrow-moat Fisher & Paykel’s systemic risk exposure has us raising our fair value estimate to NZD 16.40 from NZD 11.00, despite weaker than expected growth reported and a subdued outlook in the homecare division. Based on an AUD/NZD exchange rate of 1.05, our fair value estimate is revised to AUD 15.60 up from AUD 10.70.

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