Broker downgrades F&P Healthcare on dollar woes
Forsyth Barr analyst Guy Hallwright lowers profit forecast for Fisher & Paykel Healthcare for the next two years.
The continued strength of the New Zealand dollar has prompted Forsyth Barr to reduce its forecast for Fisher & Paykel Healthcare, while lowering its recommendation to "reduce."
Forsyth Barr has downgraded its forecasts for Fisher & Paykel Healthcare by 15% to $57m this year and by 33% to $58m next financial year.
"At the result for the 2011 financial year Fisher & Paykel Healthcare management said 2012 financial year revenues were expected to be $530m-$580m and net profit $62m-$76m assuming a New Zealand dollar exchange rate range of US70c-US80c through 2012," analyst Guy Hallwright says.
"However the New Zealand dollar has averaged over US81c in the first four months of financial year 2012 and is now over US87c.
"Our financial year 2012 forecast was $67m on an average exchange rate assumption of US76.5c but this now looks unrealistic. While we still expect the New Zealand dollar to weaken later in the year, we are raising our financial year 20 12 assumption to US84c, and we are raising our financial year 2013 assumption from US70.5c to US80c."
The New Zealand dollar has dipped back below US87c overnight and is currently sitting and US86.43c according to Reuters.
Niko Kloeten
Wed, 03 Aug 2011
Wed, 03 Aug 2011
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Broker downgrades F&P Healthcare on dollar woes
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