This report is an updated version of the report published on 1 July 2025 at 2:33 PM AEST.

Fisher & Paykel Healthcare Corporation Limited (ASX: FPH)

FPH is engaged in the design, manufacturing, and marketing of innovative products and systems for acute and chronic respiratory care, surgery, and obstructive sleep apnea treatment. With a presence in over 120 countries, the company is committed to improving patient outcomes through cutting-edge technology.

Recommendation Rationale – SELL at AUD 34.210 

• Financial Highlights: FPH’s cost of sales increased by nearly 7% YoY to NZD 750.1mn in FY25 vs NZD 698.4mn in FY24. Total operating expenses also rose by 10% YoY to NZD 761.3mn in FY25 vs NZD 691.0mn in FY24, due to increased selling, general and administrative expenses and research and development expenses during the period.
• Trading Near the Resistance: FPH stock has surpassed its R1 level recommended on 26 March 2025. Therefore, share price can face resistance at the current levels.
• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/Sales, EV/EBITDA, Price/Book, Price/Earnings) are higher than median of the Healthcare Sector.
• Market Risk: The company operates in highly regulated healthcare markets, requiring ongoing compliance with evolving standards that can affect product approvals and market access.

FPH’s Daily Price Chart

Valuation Methodology: Price/Earnings Approach (FY March'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering the YoY operating revenue growth in FY25, expected NPAT in FY26, and anticipated growth in gross margin for FY26. For conducting the valuation, the following peers have been considered: Resmed Inc (ASX: RMD), Cochlear Ltd (ASX: COH), Polynovo Ltd (ASX: PNV), and others have been considered.

Considering that the stock has surpassed its R1 level, macroeconomic uncertainty, rally in share price movement, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current price of AUD 34.21 (as of 1 July 2025, at 2:02 PM AEST). 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 1 July 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.