FPH like Ansell has also more than halved from its post-Covid high, again taking it below levels seen before the outbreak of the pandemic. Arguably the largest issue is the stocks trading on a lofty 60x valuation for 2023 in a period where value contraction has been the main game in town, revenue growth targets are solid but we question if they are already built into the share price as it approaches $20.The stock was extremely popular during the Covid panic due to its dominance of respiratory care products but the business has failed to deliver the lift in profits many expected and it’s just not overly exciting around current levels.
- We believe a degree of value has been restored to FPH but the risk/reward isn’t exciting after the stock bounced over 20%.
MM is neutral FPH around $20
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Fisher & Paykel Healthcare Corp Ltd (FPH)
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Fisher & Paykel Healthcare Corp Ltd (FPH)
